|
|
|
|
New Member
|
|
Aug 2, 2011, 09:41 AM
|
|
Monthly bonus pay after tax
What if someone get the bonus every month and it is not the same amount, for example 400-600 dollar. Is it still 25% flat tax? If that's the case than after all the deduction for a 600 dollar bonus you don't get 350+/-.. You see 250-/+ tax for 600 dollar, outrages don't you think. I think it is individuals responsibility to do the yearly adjustment for taxes, not monthly and of course not the payroll department.
|
|
|
Uber Member
|
|
Aug 2, 2011, 09:57 AM
|
|
What have you filed with your employer by means of exemptions? File for fewer exemptions and get more money in your pocket with every check.
How would you like your bonus to be taxed?
|
|
|
Expert
|
|
Aug 2, 2011, 09:58 AM
|
|
25% is the standard withholding rate for bonuses (assuming that the bonus is identified separately from your regular pay). This is not something dreamt up by the payroll department, but is mandated by the IRS.
|
|
|
Expert
|
|
Aug 2, 2011, 10:00 AM
|
|
So I will assume the "bonus" check is not part of the regular check, more often, ( at least for those I know of) the bonus is merely added to the regular pay check and taxed as such.
|
|
|
Expert
|
|
Aug 2, 2011, 10:01 AM
|
|
Originally Posted by JudyKayTee
What have you filed with your employer by means of exemptions? File for fewer exemptions and get more money in your pocket with every check
Not true - this applies only to regular wages, not "supplemental" wages like bonuses. The withholding on supplemental wages is a flat 25% regardless of what the W4 claims for allowances.
|
|
|
Uber Member
|
|
Aug 2, 2011, 10:02 AM
|
|
Sorry - in MY case my bonus is figured into the first check of the following month. It's not a separate check. I didn't see a mention of how the OP is paid - separate check or not.
|
|
|
Expert
|
|
Aug 2, 2011, 10:10 AM
|
|
Even if paid in the same check, as long as the bonus amount is identified separately from regular pay the 25% withholding still applies. The only way to avoid it is your employer pays you a lump sum without identifying either the regular wage or supplemental wage amount - under that condition then withholding for each pay check is calculated using the regular withholding methods as if every pay check will be that amount. See section 7, "Supplemental Wages," starting on page 15: http://www.irs.gov/pub/irs-pdf/p15.pdf
|
|
|
New Member
|
|
Aug 2, 2011, 11:24 AM
|
|
Whether you receive a bonus monthly or yearly, it is a flat rate of 25% from the bonus amount.
|
|
|
New Member
|
|
Aug 2, 2011, 11:28 AM
|
|
Exemptions are only used with regular salary not on bonus or commissions etc. Bonus checks are separate from what was worked in the pay period. Flat rate does not change.
|
|
|
Uber Member
|
|
Aug 2, 2011, 12:14 PM
|
|
Originally Posted by Bri1995
Exemptions are only used with regular salary not on bonus or commissions etc. Bonus checks are separate from what was worked in the pay period. Flat rate does not change.
AGAIN - I saw no indication from OP that it's a separate bonus check. MY bonus check is paid as salary as I have stated before.
I stand corrected. Apparently my bonus SHOULD be separate from what I worked in a pay period, not included as salary. I didn't realize there cannot be exceptions (such as my situation).
|
|
Question Tools |
Search this Question |
|
|
Add your answer here.
Check out some similar questions!
Deduction of monthly bonus without notice?
[ 0 Answers ]
If my company agrees to pay me a bonus on a monthly basis dependent upon revenue generated from sales, say of £1200, can they reduce that figure to £750 2 days before the payment is due to be made without advising me at the beginning of the month of their plan?
Lease ended it was weekly then went monthly do I have to pay monthly amount?
[ 6 Answers ]
I had a lease that ended in May of 2008 in which I paid weekly rent on and then it ended and it reverted month to month as stated in the lease agreement would this mean I would pay the monthly amount listed on the paperwork or do I still have to pay the weekly rent?
Also they were charging me...
Monthly bonus change because I handed in my notice
[ 2 Answers ]
Can some one help me please. I work for a recruitment company and we are paid a bonus for every candidate placed into a job, the bonus is only paid though on the candidates start date. Well I have just handed in my notice and my employer has now told me that my bonus will not be paid to me until...
View more questions
Search
|