Criminal when it is severance pay

Report problem with this ad

Feb 15, 2024
8:04:56pm

Florwood All-American

Criminal when it is severance pay

Just when you need the money the motto much of it is lent to the government for 4-16 months.

Report problem with this ad

Florwood

Bio page: Florwood
Joined: Mar 10, 2010
Last login: Nov 4, 2024
Total posts: 27,922 (76 FO)

Report problem with this ad

Messages

Author

Time

Are company annual bonuses taxed at the same rate as bi-monthly paychecks?

BleedCougarBlue2

Feb 15, 7:08pm

No, withholding is at a much higher rate, at least in my experience

AZ Coug

Feb 15, 7:08pm

That’s just the withholding. When you file the return, the income is taxed the

allaboutthegainz

Feb 15, 7:10pm

which is why I said withholding

AZ Coug

Feb 15, 7:11pm

BleedCougar asked if it’s taxed the same. You said no. It’s taxed the same.

allaboutthegainz

Feb 15, 7:12pm

So they withhold it at a certain % rate (which can be higher than your

BleedCougarBlue2

Feb 15, 7:25pm

Right. You got it. I know that there’s a way around it because my employer

allaboutthegainz

Feb 15, 7:27pm

If you adjust your w-4 accordingly it works out and you can end up owing the IRS by the end of the year,

Baron

Feb 15, 7:34pm

W-4: I prefer to not give the IRS an interest-free loan all year long. Just

BleedCougarBlue2

Feb 15, 7:42pm

again, just reduce the withholding accordingly and it will be fine and you will end up owing money.

Baron

Feb 15, 7:44pm

Literally not a screw job.

RGGeemer

Feb 15, 7:47pm

All income taxes are a screw job

AZ Coug

Feb 15, 9:38pm

It’s all dependent on the software/setup.

kjjson

Feb 15, 8:14pm

But you also said “no”

Incentivize

Feb 15, 9:18pm

Yes. The withholding is just higher.

allaboutthegainz

Feb 15, 7:09pm

It’s counted as income. But not taxed any differently during your tax return

Powerbait DPM

Feb 15, 7:10pm

I usually get taxed at about 45% when I get a bonus. Highway robbery.

KingDave

Feb 15, 7:10pm

You have money withheld at that rate. Not taxed.

kccougar

Feb 15, 7:17pm

They tax it with your standard set of deductions

webster242

Feb 15, 7:10pm

The tax rate is the same, but usually they'll withhold an automatic 22%

Feb 15, 7:10pm

Won't get a refund. Double-edged sword there....

BleedCougarBlue2

Feb 15, 7:13pm

You will owe less than if they withheld less from your bonus though.

RGGeemer

Feb 15, 7:39pm

Yep, this is true. Guess I should focus on that in an effort to be positive.

BleedCougarBlue2

Feb 15, 7:50pm

This particular kind of pay happens every year at the same time. Blessed

BleedCougarBlue2

Feb 15, 7:18pm

Withholding is not the same as taxation.

kccougar

Feb 15, 7:16pm

I've argued about this sort of thing so often that I won't add to it

Belboz

Feb 15, 7:19pm

Taxes are the same

JOPE

Feb 15, 7:24pm

It is taxed the same come tax day. Withholding depends on your company and how

RGGeemer

Feb 15, 7:37pm

No. My bonus is withheld a SIGNIFICANTLY lower % than my paycheck

fulano

Feb 15, 7:38pm

I disagree with the advice above. I think it’s likely they are ripping you off.

TCuz

Feb 15, 7:48pm

And I think it's highly likely you are an arrogant jerk.

BleedCougarBlue2

Feb 15, 7:53pm

Nice flex

JimmyZ

Feb 15, 7:50pm

Do what I do and change your Federal withholding to exempt. Then change it back

Feb 15, 7:58pm

Woah. Is that ethical?

TNT

Feb 15, 8:48pm

The IRS taxes as if it is your new salary.

Florwood

Feb 15, 7:59pm

The irs has nothing to do with the withholding. It's all your employer.

RGGeemer

Feb 15, 11:27pm

You know you can get it some of it back when you file your taxes correctly.

Feb 15, 8:00pm

Criminal when it is severance pay

Florwood

Feb 15, 8:04pm

Yeah, I get that. But the other option is to change your withholding, so that

Feb 15, 8:16pm

Report problem with this ad

Posting on CougarBoard

In order to post, you will need to either sign up or log in.

Report problem with this ad