My boss told me that he is giving me $500 as a holiday bonus. But today when I checked my bank account to see if the direct deposit was posted it was only for $460. Do they take taxes away from your holiday bonus money? (My company uses Paychex)
2007-12-20 02:23:57 · 7 answers · asked by Anonymous in Business & Finance ➔ Careers & Employment ➔ Financial Services
I believe that it's the law... they HAVE to take taxes out. Stinks, doesn't it?
2007-12-20 02:26:41 · answer #1 · answered by windycitikat 2 · 1⤊ 0⤋
If its a cash/value based gift (like a gift card) it will be taxed...Its looked at by the grinchy IRS as another form of compensation for your employment. BUT, if you recieve a christmas turkey, they won't tax your bird, so to speak.
2007-12-20 03:02:26 · answer #2 · answered by mrpoopy.pants 1 · 0⤊ 0⤋
All payments from employer to employee have to be taxed. Leaving any loopholes such as bonuses would leave it open for companies to not pay payroll taxes.
2007-12-20 02:29:04 · answer #3 · answered by oscarthegrouch 4 · 0⤊ 0⤋
Oh yeah do they ever take taxes i think you should feel lucky where i live its not even worth getting a bonus most of it is replenished by the tax
2007-12-20 02:27:14 · answer #4 · answered by ? 5 · 0⤊ 1⤋
Yes.. They take taxes out.
2007-12-20 02:31:05 · answer #5 · answered by Steph 3 · 0⤊ 0⤋
Yes.
2007-12-20 02:26:55 · answer #6 · answered by tandkalexander 6 · 0⤊ 0⤋
Of course bonuses are taxable.
2007-12-20 02:26:01 · answer #7 · answered by Wayne Z 7 · 0⤊ 0⤋