anyone else’s bonus suddenly become smaller the day payslips come out?
12 replies (most recent on top)
Changing withholding only changes your normal pay. Bonus is taxed at a specific rate based on the bonus amount, it's not changed whatsoever by changing your withholding. It's clearly stated on the internal web site and CYFF also states how that works in their financial seminars. Changing withholding for the EIP stopped working about 4-5 years ago. It's all awash at tax time anyway.
Why are people commenting explaining how taxes work lol. If you file your own taxes, it should be bare min knowledge.
I was joking with my initial comment about taxes because Idk how else the bonus is suddenly a smaller amount lol
People need to learn about taxes. Your bonus is added to your gross earnings and at the end of the year, you pay taxes on that amount. A bonus, at year end, doesn't get taxed less or more than other income.
You can have more, or less, withheld through the year, but at year end, you still owe, or get a refund, the same amount as your tax bracket dictates.
Technically, if you make $100k a year, you can pay it ALL in taxes and get a huge refund at year end, or you can pay NOTHING throughout the year and owe a big payment at year end. Both would end up resulting in the same taxable amount, (but you would pay an underpayment penalty if you don't pay at least 90 percent of what you owe)
Ha. Youbshould see the agents side. Mod has inexplicably reduced paychecks (not due to any rate decreases) and no one can explain why.
Post ID: @as+1kkz7ry5v is correct, despite the downvoting. They got wise people were messing with taxes to get a larger payout so changing to exempt before hand isnt going to mess with the bonus now.
Sorry the right info upsets some here. This is old news too, happened last year.
Let me reiterate for the dense re--rds below I was informed 3 weeks ago what my final bonus amount was going to be I got an email the same day pay stubs came out, I didn’t say my pay stub is where I saw it was less, the email showed my bonus was reduced by $500, I’ve gone tax exempt the past 2 years and have gotten my full bonus amount each year and it was confirmed by my TM’s so please keep spreading fake news you mongoloid bots
@cb your 401k isn't taken out of the bonus unless you specifically go to vanguard and select that option.
i always reduce my 401K to 1% for the bonus, then put it back to 20% after the deposit.
When you're too slow to realize bonuses aren't tax-exempt...
@ab changing your withholding doesnt affect your bonus, only your regular earnings. My god people take a CYFF and learn
@a6 I went tax exempt before hand
Yeah, taxes.