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Anyone here get a holiday bonus from their company? Or are those a thing of the past?
Because bonuses are taxed at a higher rate than regular income. Maybe you'll some of that back, maybe not. Depends on your tax situation.
The employer withholds an estimated amount, which is usually a higher percentage than what you have withheld from your regular paycheck. But when it is time to pay taxes the bonus gets lumped in with your total income, and all taxed at the same rate.
I just threw a number out there to demonstrate that the cost of a bonus as part of an hourly rate would not be very significant.
$30/hour, no bonus
$29.75 and approx $500 minus taxes at Christmas time it's all just perception.
Got a $1500 bonus and a catered meal if you work Christmas eve or Christmas. I normally get the bonus but not the meal since I don't work Christmas. The money is nice, but I wouldn't mind a card or some kind of "thank you". But as Don Draper said, I guess "that's what the money is for"...
/username, BSN, RN
526 Posts
No. Bonuses are not taxed at any other rate.