Why are Bonus' taxed so much?

[BobbyBubby]

Posted: 12/16/05 at 10:21am

Can someone shed some light on this? I just got my holiday bonus and they took out twice the amount of taxes. Any reason for this?

[etoile]

Posted: 12/16/05 at 10:24am

What are these bonuses of which you speak?

[BobbyBubby]

Posted: 12/16/05 at 10:25am

Lol. My works way of trying to feel better about treating employees like crap the other 364 days a year.

[touchmeinthemorning]

Posted: 12/16/05 at 10:27am

Sounds like your bonus pushed you into a higher tax bracket.

[SorryGrateful]

Posted: 12/16/05 at 10:29am

My (first ever) Christmas bonus wasn't taxed at all. I was surprised because everyone told me that if I got one, the hell would be taxed out of it.

[midtowngym]

Posted: 12/16/05 at 10:29am

You're taxed as if your bonus check was for one weeks (or bi-weekly) pay. Since your bonus is much greater than your weekly salary, you're pushed into a higher tax bracket.
In other words, assume your enormous (i hope) bonus check was merely your weekly salary. You'd be a big shot with lots of taxes to pay.

Updated On: 12/16/05 at 10:29 AM

[BobbyBubby]

Posted: 12/16/05 at 10:30am

Hmmm...Cause my bonus is only about 100 bucks more than my regular paycheck.

[midtowngym]

Posted: 12/16/05 at 10:32am

Then you should quit! Don't know your specifics or any of the amounts you're referring to, so i can't definitively say.

[BobbyBubby]

Posted: 12/16/05 at 10:34am

I'm so quitting!

Hehe.

I had read something that bonus' were taxed at a different rate...

[Broadwayboobs]

Posted: 12/16/05 at 10:35am

Bonus' should be tax free to emploees...the company should pay the tax...after all it's supposed to be a gift for doing a great job all year.

[BobbyBubby]

Posted: 12/16/05 at 10:37am

That's what I thought!

Maybe I didn't do a great job...

[Magdalene]

Posted: 12/16/05 at 10:37am

My bonus is usually about $100. (even after 15 years). It's free money, however, so no complaints!

[bdwaygirl]

Posted: 12/16/05 at 10:38am

*pulls Boobs head out of the clouds*

[midtowngym]

Posted: 12/16/05 at 10:39am

People--A $100 bonus is at least $2,000 below insult. Where exactly are these crappy bonuses handed out? You all deserve better.

[BobbyBubby]

Posted: 12/16/05 at 10:44am

I work at a leading research company that grossed upwards of 100 million bucks last year, while still maintaining a non-profit status.

You'd think they could do better...
Updated On: 12/16/05 at 10:44 AM

[Magdalene]

Posted: 12/16/05 at 10:45am

I agree it's a tad low, but it IS a gift---some people don't get anything at all!

[SonofMammaMiaSam]

Posted: 12/16/05 at 10:46am

When did the definition of bonus read entitlement? Be thankful you got one. Most people do not.

[brdlwyr]

Posted: 12/16/05 at 10:48am

We set our bonuses and raises today for the staff.

There is not a separate tax rate for bonuses. Someone gave you bogus bonus info.

[RobbO]

Posted: 12/16/05 at 10:49am

my bonus for being treated like crap all year is being forced to go to a "holiday party" for three hours with the same yahoos who don't acknowledge anyone "below their level" on a regular basis.

i'd rather have $100.

[Corine2]

Posted: 12/16/05 at 10:49am

Updated On: 12/16/05 at 10:49 AM

[touchmeinthemorning]

Posted: 12/16/05 at 10:50am

I got a nifty planner as a "bonus". I saw the same planner in Staples yesterday night. It was on sale for $4.99.

[brdlwyr]

Posted: 12/16/05 at 10:51am

Roob - can you transcribe dictation? Send me your resume.

[midtowngym]

Posted: 12/16/05 at 10:51am

There may indeed be a different tax rate for bonuses, depending on who does the bonus and how it's calculated. I've got a couple of degrees and certifications to back up his knowledge in this area. Middy doesn't get paid to discuss theater on-line all day, ya know.

Updated On: 12/16/05 at 10:51 AM

[RobbO]

Posted: 12/16/05 at 10:51am

i'd rather have the $4.99 than being forced to socialize with people at my company.

[BobbyBubby]

Posted: 12/16/05 at 10:51am

They gave you a 4 $ planner? That's insulting.