Anonymous
12/26/2014 12:52
Subject: Is my bonus being overtaxed or is this normal?
Anonymous wrote:Anonymous wrote:Bonuses are taxed higher than salary, as is anything that comes in a lump sum such as severance or vacation payout. Thems the breaks.
Correct.
Not correct. The witholding is higher, but you'll get it back at tax time. There is no higher rate. It's all income.
Anonymous
12/26/2014 12:43
Subject: Is my bonus being overtaxed or is this normal?
Anonymous wrote:Bonuses are taxed higher than salary, as is anything that comes in a lump sum such as severance or vacation payout. Thems the breaks.
Correct.
Anonymous
12/26/2014 12:42
Subject: Is my bonus being overtaxed or is this normal?
Anonymous wrote:Bonuses are taxed higher than salary, as is anything that comes in a lump sum such as severance or vacation payout. Thems the breaks.
Incorrect. They are subject to higher rates of withholding, not tax.
Anonymous
12/26/2014 12:42
Subject: Is my bonus being overtaxed or is this normal?
Anonymous wrote:Now you understand how terrible it feels when you are in the top income bracket, half is basically taken from you.
If you're in the top tax bracket -- meaning you effectively gross $500,000 a year -- and feel "terrible" that you pay a higher rate of tax on every dollar after that amount -- you need to be smacked upside the head.
Anonymous
12/26/2014 11:33
Subject: Is my bonus being overtaxed or is this normal?
Bonuses are taxed higher than salary, as is anything that comes in a lump sum such as severance or vacation payout. Thems the breaks.
Anonymous
12/26/2014 09:20
Subject: Is my bonus being overtaxed or is this normal?
I'd also suggest that many bonuses don't go toward pretax goodies like health care and 401K. So there's more to tax, potentially raising your bracket on this one.
Anonymous
12/26/2014 08:04
Subject: Is my bonus being overtaxed or is this normal?
Now you understand how terrible it feels when you are in the top income bracket, half is basically taken from you.
Anonymous
12/26/2014 07:55
Subject: Is my bonus being overtaxed or is this normal?
As a PP basically explained - withholding is done by effectively annualized your pay amount and pay period over the entire year and taxing it as if you earned that amount for every pay period of the year. If you look at the tax table you will see different brackets with the marginal rates - the first tier of income is taxed at 10%, the next at 15%, next at 25%, up to 39.6 (for federal).
Anonymous
12/25/2014 21:20
Subject: Is my bonus being overtaxed or is this normal?
Normal. Keep voting democrat.
Anonymous
12/25/2014 20:51
Subject: Is my bonus being overtaxed or is this normal?
Anonymous wrote:I'm confused. Are bonuses taxed higher than your salary? I thought you just get it back at tax time.
Yes
Anonymous
12/25/2014 20:50
Subject: Is my bonus being overtaxed or is this normal?
Normal
Anonymous
12/25/2014 20:40
Subject: Is my bonus being overtaxed or is this normal?
This is OP. My bonus appears to have been taxed higher than my salary. I generally receive 57% of my paycheck in net and 43% goes to taxes.
Anonymous
12/25/2014 20:16
Subject: Is my bonus being overtaxed or is this normal?
I'm confused. Are bonuses taxed higher than your salary? I thought you just get it back at tax time.
Anonymous
12/25/2014 18:16
Subject: Is my bonus being overtaxed or is this normal?
Anonymous wrote:Anonymous wrote:Anonymous wrote:A good company pays you your bonus as perdiem
No taxes.
lol wut? How do you pay $50,000 or more out of per diem?
For smaller bonuses say 5k and under a good company
Will pay you as perdiem over a couple checks.
Tax free.
That's fraud
Anonymous
12/25/2014 17:37
Subject: Is my bonus being overtaxed or is this normal?
Anonymous wrote:Anonymous wrote:Anonymous wrote:A good company pays you your bonus as perdiem
No taxes.
lol wut? How do you pay $50,000 or more out of per diem?
For smaller bonuses say 5k and under a good company
Will pay you as perdiem over a couple checks.
Tax free.
Good companies don't commit tax fraud.