i was supposed to get a $303.00 bonus from work. it went on my reg paycheck and the total reflects I only got about $222.00 in bonus. Are bonuses subject to the same deductions as regular pay? The put it on my reg weekly paycheck, should they have given me a seperate check for just the bonus? Would they still have taken out taxes ? bee deducted
2007-10-24 22:49:50 · 10 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Bonuses are the same as regular wages/salaries/tips. They are subject to tax in the same manner as regular wages. Otherwise, employers could pay their employees minimum wage and give out huge bonuses. The IRS doesn't care whether it's a normal wage, tip, bonus, etc.
2007-10-24 23:06:00 · answer #1 · answered by Flyer 4 · 1⤊ 1⤋
Work Bonus Tax
2016-11-05 00:22:07 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Bonuses are taxable income. When you file your tax return, it will be lumped in with your other income on your W-2 and tax will be whatever your tax rate is. If they write a separate check for a bonus, and sometimes even if they just include it with your paycheck, they withhold federal taxes at a rate of 25%. If your rate when you figure your tax at the end of the year is less than that, you'll get any extra back - if your rate is higher, you'd owe the additional.
2007-10-25 04:10:21 · answer #3 · answered by Judy 7 · 0⤊ 1⤋
Bonuses are treated just like regular income, for taxation and withholding purposes. Whether you get a separate check or have the bonus added to your regular check is irrelevant.
The tax withholding you describe sounds appropriate.
2007-10-25 02:18:56 · answer #4 · answered by acermill 7 · 0⤊ 1⤋
Bonuses and other irregular payments are subject to statutory withholding at 25%. Bonuses do not have to be paid in a separate check. The withholding would be the same if it was paid separately or added to your regular paycheck.
2007-10-24 23:12:24 · answer #5 · answered by Bostonian In MO 7 · 3⤊ 1⤋
on the grounds that withholding on any given examine is calculated as in case you made that comparable volume each and every pay era all 12 months, in case you get a examine it is your widely used paycheck plus an advantage, or according to possibility an advantage examine via itself it somewhat is larger than your widely used paycheck, withholding would be an more suitable volume and in all possibility even an more suitable %. yet on the tip of the 12 months once you document your return, the bonus volume would be taken care of purely like usual wages, and the tax you pay will remember on your finished earnings and submitting status, yet is purely no longer bigger because of the fact there is an advantage in contact.
2016-12-30 05:04:37 · answer #6 · answered by ? 3 · 0⤊ 0⤋
Bonuses are taxed at a Federal rate of 25%. You will get any excess tax withholdings back when you file your taxes.
2007-10-25 11:20:59 · answer #7 · answered by Steve 6 · 0⤊ 0⤋
Bonus is earned income and is subject to social security and medicare taxes just like your wages.
2007-10-25 00:29:44 · answer #8 · answered by MukatA 6 · 1⤊ 0⤋
Bonuses are subject to tax like any other payment to you from your employer.
2007-10-25 02:03:15 · answer #9 · answered by Wayne Z 7 · 0⤊ 3⤋
I got tax off my bonus and it was a shocking amount! It nearly put it to half. Theres no law against it sadly. We asked for it to be check form and not in our wage but it was rejected.
I feel your pain!
2007-10-24 22:53:46 · answer #10 · answered by Athena 3 · 1⤊ 4⤋