Year end Company bonus tax rate?

[COOL COBRA]

I guess I shouldn't complain, but damn! 40.5% tax rate on a bonus seems pretty steep to me.
I pay out upper 30% all year on salary allready.
I dread to think what those thousands of dollars out of my pocket actually went to support.
I'm pouring another shot of bourbon. Pondering on it.

 

[RDJ]

you will get some of it back when you file your income taxes ...

 

[9397SVTs]

I guess I shouldn't complain, but damn! 40.5% tax rate on a bonus seems pretty steep to me.
I pay out upper 30% all year on salary allready.
I dread to think what those thousands of dollars out of my pocket actually went to support.
I'm pouring another shot of bourbon. Pondering on it.

Entitlements.

 

[SID297]

Shit like that is why I'm thinking of moving to Puerto Rico.

 

[COOL COBRA]

Shit like that is why I'm thinking of moving to Puerto Rico.

Yup, all you need is a boat. Oh wait!

 

[COOL COBRA]

you will get some of it back when you file your income taxes ...

Keyword some. I allready get screwed because I refuse to "cheat" on taxes. I've seen the results of that over the years from co-workers thinking they had it all figured out. Long story short, the IRS don't play.
Being said, my bonus will add to my year end total income. Just got smacked with 40.5% on that, and will pay about 38% on my annual income also.
America I guess. As it is now.

 

[Zemedici]

59.5% of something is better than 100% of nothing

 

[MFE]

AFAIK you get taxed at the rate that would apply if that was your regular pay. When I was 20 making time-and-a-half on overtime during a summer job, my net check after taxes after working two 80-hour weeks in a row was a hard and lasting lesson. That pay rate bumped me way up the annualized withholding scale, and I didn't get **** all in my pocket for my effort until tax season.

 

[DSG2003Mach1]

Ultimately it should be at your normal rate when you file your taxes. Something about the way payroll software views that one check and factors it a predicted income - it doesn’t know it’s a bonus aka a one time check

When we did payroll in-house we would run quarterly bonuses as a separate check run and the taxes taken out were lower compared to doing it on the same check with their weekly pay

 

[HillbillyHotRod]

Yup, all you need is a boat. Oh wait!

And a GOOD security system. When I was there some years back it had extremely high crime. Heck the place I was working had the police next door and every night there was gunfire in the project next door. Hell even the police station had razor wire around it. May have changed but would not be a place I would move to.

 

[coposrv]

You but you still have a COOL COBRA


Sent from my iPhone using svtperformance.com

 

[jeffh81]

I will take that over a jelly of the month membership any day

 

[thomas91169]

Yup, thanks Obama. Due to him, bonuses are taxed at almost 50% because he thought if he did that, employers would instead put that money into their salary and it would drive salary bumps. But nope, it just meant those in positions of heavy bonusing get less money.

 

[gimmie11s]

Pfffffffffffffffffffffffffffffffffft.

Feds got 0% of my bonus this year!













Cuz I didnt get one!

 

[HudsonFalcon]

My Christmas Bonus is a calendar......a calendar of ****ing trains.

 

[_Snake_]

AFAIK you get taxed at the rate that would apply if that was your regular pay. When I was 20 making time-and-a-half on overtime during a summer job, my net check after taxes after working two 80-hour weeks in a row was a hard and lasting lesson. That pay rate bumped me way up the annualized withholding scale, and I didn't get **** all in my pocket for my effort until tax season.

Ultimately it should be at your normal rate when you file your taxes. Something about the way payroll software views that one check and factors it a predicted income - it doesn’t know it’s a bonus aka a one time check

When we did payroll in-house we would run quarterly bonuses as a separate check run and the taxes taken out were lower compared to doing it on the same check with their weekly pay

OP has it right. You get taxed based on the amount of the bonus check and then your overall tax rate is based on your annual income. The company I work for pays bonuses in February, at least partially for this reason (no year end surprises).

 

[CV355]

I know that feeling. Since every pay period is taxed as if you made 52x that amount in a year, one fat check is going to get taxed to bajeezes and back. Best not to think about what the government does with it.

-Pays for prisoners to have gender reassignment surgery
-Entitlements for "thems peoples who aint dun wanna work"
-Paid for Anthony Weiner's phone
-Pays Robert Mueller's salary
-Paid for Richard Blumenthal's industrial teeth whitening regimen
-Pays for Office of redundancy department office department of redundancy office (ORDODRO for short)

I'd rather make 30% less and pay no taxes because it's such a joke.

 

[GodStang]

What's a bonus?

 

[PhoenixM3]

I guess I shouldn't complain, but damn! 40.5% tax rate on a bonus seems pretty steep to me.
I pay out upper 30% all year on salary allready.
I dread to think what those thousands of dollars out of my pocket actually went to support.
I'm pouring another shot of bourbon. Pondering on it.

Beats the Jelly of the Month Club that we’re getting....

 

[PhoenixM3]

I will take that over a jelly of the month membership any day

Jinx...