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Feb 15, 2024
7:38
:03
pm
fulano
All-American
No. My bonus is withheld a SIGNIFICANTLY lower % than my paycheck
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fulano
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fulano
Joined
Nov 6, 2001
Last login
Sep 7, 2024
Total posts
21,282 (16 FO)
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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%
wannnacruise
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
Jeff Spicoli
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.
Fatalplacebo
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
Fatalplacebo
Feb 15, 8:16pm
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