2007-01-02 07:52:05 · 6 answers · asked by andy e 2 in Business & Finance ➔ Taxes ➔ United States
Short answer, yes...er..maybe. If the normal pay and bonus equal a total that is higher than your your normal tax bracket, then yes, you will be taxed at a rate as if the pay you receive at that one time was actually your standard pay. It probably won't tax you "twice as much", but if your tax bracket is..say... the 27% bracket, and the bonus moves you up to the (I think its) 39% bracket, then yes, you'd be taxed higher for that one pay.
It would all balance out, because you should be able to get it back in a refund, provided you get one.
2007-01-02 07:59:03 · answer #1 · answered by gengidashiell 3 · 0⤊ 1⤋
A dollar is a dollar. Whether it's regular pay or bonus pay makes absolutely no difference. Until the total reaches the max annual amount for taking out Social Security tax (for example) it's all taxed.
2007-01-02 07:58:41 · answer #2 · answered by ? 7 · 0⤊ 0⤋
No, a straight bonus check gets taxed way more than a regular check. Things will even out at the end of the year.
2007-01-02 07:58:31 · answer #3 · answered by breastfed43 3 · 1⤊ 0⤋
Since when you file you'll owe taxes on bonus money the same as on normal pay, it's not costing you any extra. If bonuses aren't pretty close to the same each pay period, you might see withholding at a higher rate when your bonus is high, but when you file, it'll even out and you'll get back any extra that was withheld.
2007-01-02 15:35:36 · answer #4 · answered by Judy 7 · 0⤊ 0⤋
we own our business ,and that's how we pay our employees every week ,we pay there hourly and bonus on the same check .
For tax reasons .
there's weeks our employees make more on the bonus then hourly .
Example there check $400 to $500 and they made $600 to $700 on bonus ,everything gets Tax deducted.
2007-01-02 08:03:28 · answer #5 · answered by Anonymous · 0⤊ 0⤋
I think you get taxed the same amount either way. Income is income.
2007-01-02 07:55:27 · answer #6 · answered by Rairia 3 · 0⤊ 0⤋