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Uncle sam takes 41% of your bonus?

S

SCSIfreek

Diamond Member
Just received a check for 3% of my salary as a company Bonus!!! Woooo hoooo.... 🙂 Although uncle sam took a whooping 41% away from it. :| Glad to see some holiday cash nonetheless. What should I buy hmmm?



Happy holidays Everyone!!!



--Scsi
 
41%? You must be in a higher tax bracket than me, because all I lost from my bonus was ~30%. It was about 7% of my salary so I'm not complaining too loudly either.
 
Thank Clinton in his '93 tax increase. After that a bonus was considered 'excess income' and subjected to a higher rate of taxation than normal income.

Good job btw! Nice to hear something positive about a job.
 
withholding on bonuses may be at a higher rate than your normal salary

many people that get significant bonuses get a higher refund due to the rate of withholding on the bonus being higher than their actual tax rate

have fun with your $ (and pay off a bill or two 😉 )
 
at least you guys get a bonus...all I got was a $25 Marshall Field's gift card...🙁


that should just about cover the tax at MF, since $25 will get you like half a shirt
 
don't you think 41% is a bit too much? I mean did the government work extra hard to serve me? I dont think so. 🙁

--Scsi
 
Yeah, its taxed higher, but you should get the extra amount you paid back after you file your taxes for the year.
 
Originally posted by: SCSIfreek
don't you think 41% is a bit too much? I mean did the government work extra hard to serve me? I dont think so. 🙁

--Scsi
Click to expand...


You shut up! That's the government's money! You should be happy they gave you any of it, effing ingrate:|






😉
 
Originally posted by: thebestMAX
Hee Hee,

Dont forget the State and local taxes and the Sales tax when you spend what you have left!
Click to expand...

Oh you don't have to remind me of that. Best way to spend it, would be on the internet(out of state companies) hint hint@

--Scsi
 
I think some clarity needs to be dispersed in this thread:

1) By law, your employer must withhold 28% for FIT on bonuses, regardless of your normal tax withholding percentage.

2) FICA is 7.65%

3) Total Uncle Sam Tax = 35.65% <--- Still way too high.

4) The difference is probably your state and local taxes, not Uncle Sam.

5) You can lower the tax impact by getting into your employer's 401K, if you have it. By law, 401K must also be withheld from bonuses, if you are actively in the plan.
 
Originally posted by: SCSIfreek
don't you think 41% is a bit too much? I mean did the government work extra hard to serve me? I dont think so. 🙁

--Scsi
Click to expand...

41% sounds about right if you include state tax in there as well. My bonus got sacked just as bad. The Feds took 39% of it. Uncle Davis and the great state of California got 9%. My girlfriend got the other half in the form of a necklace. I got the pay stub.
 
at the end of the year, it is your total income that matters, correct? so you might very well get alot of that back.
 
Originally posted by: Triumph
at the end of the year, it is your total income that matters, correct? so you might very well get alot of that back.
Click to expand...

True, depending on your effective tax rate.

 
One of the reasons you have a job, let alone a bonus, is because of the USA as a whole, including the government.

So be happy!
 
Originally posted by: CPA
I think some clarity needs to be dispersed in this thread:

1) By law, your employer must withhold 28% for FIT on bonuses, regardless of your normal tax withholding percentage.

2) FICA is 7.65%

3) Total Uncle Sam Tax = 35.65% <--- Still way too high.

4) The difference is probably your state and local taxes, not Uncle Sam.

5) You can lower the tax impact by getting into your employer's 401K, if you have it. By law, 401K must also be withheld from bonuses, if you are actively in the plan.
Click to expand...


Sorry I should have cleared things up. Yes it includes CA State tax, Medicare, CA SDI, Social Security.
 
Yeah this is major ass. We (the peons anyway) get a bonus = to one pay period, which I guess is about 8.5% Maybe this wouldn't have been the slowest Christmas shopping season in 30 years if they didn't take 42% of people's bonuses.
rolleye.gif
:disgust:
 
that is such bs because i work 7 days for my bonus, why should I pay a higher tax rate for those guy that only work 5 days
 
Originally posted by: FoBoT
withholding on bonuses may be at a higher rate than your normal salary

many people that get significant bonuses get a higher refund due to the rate of withholding on the bonus being higher than their actual tax rate

have fun with your $ (and pay off a bill or two 😉 )
Click to expand...
Yes, and be greatful that you received the bonus towards the end of the year. Within a few months when you file your 2002 tax return, you should get back some of the extra money that they witheld.

 
You guys got a bonus? I'm happy for you, sincerely. 🙁 I got the wonderful feeling of accomplishment of being at this loser company for more than a year. Yay me! They even let me work on holidays! Aren't they nice? 😀
 
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