Anyone questioning why we just got taxed at commission rate for this payout when we were told that wasn’t the case. Been on hold with payroll for 20+ minutes and now there’s an automated response saying we just got taxed at federal rates plus 22% and the FAQs are saying will be taxed at “your ordinary rate”. Cmon VZW you’re losing reliable employees with your inconsistencies.
5 replies (most recent on top)
Because that is the law. Perhaps you should read through the FAQs. It's no different than STI, it's considered a bonus, therefore the government feels like they are entitled to bigger piece.
The $ was peanuts anyway so who cares
it was all in the faqs
Additionally, if you are retirement eligible, your award is treated as non-forfeitable and is thus FICA taxed for the entire two year award this year. Next year, those taxes will not be withheld. This was communicated via a big banner on your paystub page.
You did not get “taxed” at 22%. You got 22% “withheld” which is standard for any payments made outside your base wages which is what/when VZ uses your W-4 form....you don’t “pay” taxes per se until you actually file your return which then compares what your tax liability was for the year compared to what was “withheld” during the year. The difference is what your refund is or what you owe.