Anonymous
12/15/2014 15:45
Subject: Taxes and Holiday Bonuses
Anonymous wrote:Anonymous wrote:One year, my bonus was taxed and it pushed my income over a certain amount and I missed out on a tax break.
It's considered income so why would you expect otherwise? If a bonus was tax-free, everyone would be getting minimal wages and huge bonuses.
I wasn't saying that. Don't be an ass.
Anonymous
12/15/2014 15:31
Subject: Taxes and Holiday Bonuses
If it's a bonus, it's income and is taxed. But many people give "personal gifts" which they pretend aren't pay, untaxed, which is illegal but will never, ever be caught.
Anonymous
12/15/2014 11:50
Subject: Taxes and Holiday Bonuses
My bonuses are taxed and bonuses are taxed at 33%. It is the law. I would prefer to be handed cash, but have no problems following the law.
Anonymous
12/14/2014 14:30
Subject: Taxes and Holiday Bonuses
Anonymous wrote:Anonymous wrote:Anonymous wrote:One year, my bonus was taxed and it pushed my income over a certain amount and I missed out on a tax break.
It's considered income so why would you expect otherwise? If a bonus was tax-free, everyone would be getting minimal wages and huge bonuses.
I am learning that a lot of families actually do this! Or, what they do is pay the nanny "on the books" for minimum wage, and the rest off the books. This usually results in a lower hourly rate for the nanny, but more take home, and less tax liability for the parents, but they still get the child care tax credit because they're paying that much "on the books."
Major downsides to this: illegal, nanny's social security account takes a huge hit, nanny can't prove income for loans, etc...
Interesting strategy. Never thought people did this for household help, only in business where the state and federal taxes are immediately deducted.
Anonymous
12/13/2014 16:37
Subject: Taxes and Holiday Bonuses
Anonymous wrote:Legally, bonuses are taxed like any other income.
In practice, many employers do what I do, which is give cash under the table. I am comfortable with this level of illegality.
Same here.
Anonymous
12/13/2014 09:24
Subject: Taxes and Holiday Bonuses
Anonymous wrote:Anonymous wrote:One year, my bonus was taxed and it pushed my income over a certain amount and I missed out on a tax break.
It's considered income so why would you expect otherwise? If a bonus was tax-free, everyone would be getting minimal wages and huge bonuses.
I am learning that a lot of families actually do this! Or, what they do is pay the nanny "on the books" for minimum wage, and the rest off the books. This usually results in a lower hourly rate for the nanny, but more take home, and less tax liability for the parents, but they still get the child care tax credit because they're paying that much "on the books."
Major downsides to this: illegal, nanny's social security account takes a huge hit, nanny can't prove income for loans, etc...
Anonymous
12/13/2014 08:38
Subject: Re:Taxes and Holiday Bonuses
We have always given the bonus tax free. So arrest me... It's a gift and she deserves it. We do cash (currency) as well.
Anonymous
12/12/2014 20:40
Subject: Taxes and Holiday Bonuses
Anonymous wrote:Anonymous wrote:One year, my bonus was taxed and it pushed my income over a certain amount and I missed out on a tax break.
It's considered income so why would you expect otherwise? If a bonus was tax-free, everyone would be getting minimal wages and huge bonuses.
+1
Anonymous
12/12/2014 19:05
Subject: Taxes and Holiday Bonuses
Anonymous wrote:One year, my bonus was taxed and it pushed my income over a certain amount and I missed out on a tax break.
It's considered income so why would you expect otherwise? If a bonus was tax-free, everyone would be getting minimal wages and huge bonuses.
Anonymous
12/12/2014 19:03
Subject: Taxes and Holiday Bonuses
Anonymous wrote:Employer here. Do you typically pay taxes on a holiday bonus? We were planning on giving one week's salary. TIA!
Yes, we do. It's the law.
Anonymous
12/12/2014 18:50
Subject: Taxes and Holiday Bonuses
One year, my bonus was taxed and it pushed my income over a certain amount and I missed out on a tax break.
webbkathy
12/12/2014 16:45
Subject: Taxes and Holiday Bonuses
Sorry, legally the cash value of a gift card is taxable income just like a cash bonus. 
Anonymous
12/12/2014 13:15
Subject: Taxes and Holiday Bonuses
I wouldn't tax it...Just be nice + let her enjoy some spending money tax-free.
Or if it really worries you, you can always give her a gift card or just an expensive gift.
Or if it really worries you, you can always give her a gift card or just an expensive gift.
Anonymous
12/12/2014 12:20
Subject: Taxes and Holiday Bonuses
Legally, bonuses are taxed like any other income.
In practice, many employers do what I do, which is give cash under the table. I am comfortable with this level of illegality.
In practice, many employers do what I do, which is give cash under the table. I am comfortable with this level of illegality.
Anonymous
12/12/2014 12:00
Subject: Taxes and Holiday Bonuses
Employer here. Do you typically pay taxes on a holiday bonus? We were planning on giving one week's salary. TIA!