2007-08-04 09:04:37 · 16 answers · asked by cokeonshelf 1 in Business & Finance ➔ Taxes ➔ United States
No. Social Security, Medicare and Federal Income Taxes will be withheld. The FIT will be withheld at the statutory rate of 25%. This withholding rate applies to all bonuses and irregular payments. SS and MED are withheld at the standard combined rate of 7.65% If your state also levies an income tax, state income tax may be withheld as well.
Assuming no SITW, the total withholding will be 32.65% and your net bonus will be $1,347.00. SITW will reduce that further depending upon your state.
2007-08-04 09:20:13 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 1⤋
No - notice minus taxes comes after the $2,000. Confusing but you still don't get the full $2 grand.
2007-08-04 09:08:08 · answer #2 · answered by Anonymous · 2⤊ 0⤋
bostonianinmo is partially correct about the 25% withholdling. If supplemental wages are under $1,000, employers have the OPTION of withholding at a flat 25% rate OR adding the amount to regular wages for your first paycheck and withholding at the regular rate. (Pub 15, page 13). Because the total is >$1,000, the flat rate is 35% instead of 25%. (Pub 15, page 12). I would expect a check for $1,300. ($2,000 - 35%)
2007-08-04 15:10:18 · answer #3 · answered by STEVEN F 7 · 0⤊ 0⤋
The first responder is incorrect. You get the $2000 minus the taxes that are owed on it. They take the taxes out just like they would a regular paycheck. So, whatever taxes you would normally pay on $2,000 in income would come out of it.
2007-08-04 09:09:23 · answer #4 · answered by SelfGrill 3 · 1⤊ 2⤋
No, you'll probably end up with somewhere between $1200 and $1500. They'll take out $153 for social security and medicare, probably $400-$500 for federal income tax. Depending on where you live, there might also be state and/or local taxes taken out. It's no different from salary - they state what your gross is, then taxes come out of that.
2007-08-04 09:42:49 · answer #5 · answered by Judy 7 · 0⤊ 1⤋
You will get $2,000 less whatever you would be taxed based on how you complete your W-4 along with SSI, Medicare, etc.
If your salary is $50,000 you aren't going to actually receive that full amount for the year- same idea.
2007-08-04 09:10:44 · answer #6 · answered by jennrfp 3 · 1⤊ 1⤋
No, you get the $2,000 minus taxes (just like it says!!!)
2007-08-04 09:10:46 · answer #7 · answered by Anonymous · 1⤊ 0⤋
No, taxes are taken out. That's what "minus taxes" means.
2007-08-04 09:08:10 · answer #8 · answered by Angie 6 · 2⤊ 0⤋
The $2,000 is the gross they will deduct Fica and withholding tax so your net depends on your W-4
2007-08-04 09:08:09 · answer #9 · answered by shipwreck 7 · 1⤊ 1⤋
of course not. minus taxes means $2000 - taxes, taxes are around 22%, so you'll be getting 2000-440=1560, around $1560.
2007-08-04 09:08:24 · answer #10 · answered by delilah 3 · 2⤊ 1⤋