[bellman0213]

I was just laid off from my job and received a retention bonus. We worked for 6 weeks knowing we were losing our jobs to another company. Our retention bonus was compensation of one week pay for each year worked and Fed withholding was to be 25%. When we got our checks we were also had Social Security tax and medicaid taken out. Why if it wasn't earned income?

[Wildsporty]

Social Security and Medicare comes out of all income paid. Retention bonus is still considered income and is Medicare and social security need to come out.

Shirley