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Yearly Bonus Ripped Off?

Posted

Specializes in none.

So at my local hospital, nurses are getting a yearly bonus. But, I guess the IRS taxes the hell out of them. Up to 40 percent of their bonus is gone! Do you think this is crazy? A bonus is payment that a nurse earns, and it should not be tampered with! Maybe someone with more experience with taxes can explain why this happens.

I agree, but at least you get one...

"A bonus is payment that a nurse earns [...]"

Yes, therefore it is income. Just as waiters/ waitresses earn tips atop their 'hourly wage', a bonus received by a nurse is part of their taxable income.

Lennonninja, MSN, APRN, NP

Specializes in MICU - CCRN, IR, Vascular Surgery. Has 10 years experience.

Yearly bonus, what a cute idea. I wonder what that's like?

MrChicagoRN, RN

Specializes in Leadership, Psych, HomeCare, Amb. Care. Has 30 years experience.

The IRS says it is taxable income.

Your company could make you feel good and not take out taxes when they pay you, but you'd still owe the money come tax time.

amoLucia

Specializes in LTC.

It's income. Pure & simple.

SionainnRN

Specializes in Emergency Room, Trauma ICU. Has 5 years experience.

You need to change your title, ****** is a racist and offensive term.

Edited by Esme12

studentnursemon86

Specializes in ER/Emergency Behavioral Health.... Has 8+ years experience.

We are getting one for the first time in years. It is added onto our paycheck. For most of us it throws us into the next tax bracket and we lose about half of it.

This is life.

BrandonLPN, LPN

Has 5 years experience.

Of course it's taxable. It's income.

You want the hospital should pay you under the table or something?

I think the issue was with the amount taken in taxes (40%), not the fact that it was taxed, no?

What is this bonus thing of which you speak?!?!?!

In all seriousness, whomever is negotiating a bonus, needs to aim higher--as all income is taxed--including bonuses.

If the goal is a 500 dollar net bonus, then one negotiaties for a 750 bonus. This bonus stuff is a cool trick to not give a yearly wage increase. (

Usually, a union negotiation for an increase in wages results in these bonuses as opposed to an hourly increase that would look like nothing on paper. (ie: Would you rather have $1000 NOW, or a $1.00 an hour increase?) That way, everyone is "even" and gets the same thing, it is made in the illusion of "fairness". And because it is usually the less seasoned nurses who have the gumption to get involved in negotiating, this makes more sense to them--ie: if I am making 45 per hour as a multi-year nurse, and they are making 25 per hour as a newer nurse, the dollar an hour is going to make more sense to me than to them.

Bottom line, that your negotiating team was able to squeeze any extra money for the nurses is good thing, and rare these days. When I began nursing, there were yearly cost of living increases, as well as increases when one hit their anniversary date. That came to a screeching halt a few years back--and it was a hot mess to attempt to even get a little raise at any negotiation. So then began the "we will GIFT you with a bonus" that was heavily taxed, when spread out amounted to about 50 cents an hour in an increase....and they appeased everyone who was at the same pay level for years.

studentnursemon86

Specializes in ER/Emergency Behavioral Health.... Has 8+ years experience.

Oh.

We don't negotiate our bonuses. It is based off the hospital's revenue. We are given financial goals at the beginning of the fiscal years (ways to cut cost but still improve patient care..:right:)

If we meet said goals, we get a bonus.

It would be awesome if they cut a separate bonus check. Maybe less would be taken out in taxes.

That is for when we get one. This is the first one in about 4 years.

blondy2061h, MSN, RN

Specializes in Oncology. Has 15 years experience.

Most nurses don't get bonuses, so hard to get sympathy on that front. I get about 40% in taxes taken out every time I work any amount of OT.

klone, MSN, RN

Specializes in Women's Health/OB Leadership. Has 15 years experience.

You need to change your title, ******* is a racist and offensive term.

Just thinking that. I internally cringed when I read it.

Edited by Esme12

JustBeachyNurse, RN

Specializes in Complex pediatrics turned LTC/subacute geriatrics. Has 11 years experience.

That is the appropriate tax rate. Your gross bonus was reduced as per the IRS taxation code rates as a bonus is income. This is not slight of hand. Your choice of terminology is unprofessional, insensitive and racist. I understand the frustration but taxes are reality. If the bonus is 2x your weekly salary or more it can be taxed 40% or more as you are in a higher tax bracket. Just like you pay a higher tax rate when you work overtime. Now you know and can be better prepared if you earn a bonus again.

Remember the more you make the more they take.

klone, MSN, RN

Specializes in Women's Health/OB Leadership. Has 15 years experience.

Bonuses are considered "supplemental income" by the IRS. They're not necessarily taxed HIGHER than regular income, per se. But the extra money will bump you into a higher withholding amount, and your entire paycheck, including your regular wages, are taxed at that higher rate, thus a greater amount of taxes are removed.

"*******" is a very racist term. It would be like saying "I ****** them down." Please, it's gross.

Edited by Esme12

LadyFree28, BSN, RN

Specializes in Pediatrics, Rehab, Trauma. Has 10 years experience.

Remember the more you make the more they take.

THIS.

All. Day. LONG.

Some of us have to change jobs to have COLAs and increases; at least you got a bonus. :blink:

KelRN215, BSN, RN

Specializes in Pedi. Has 10 years experience.

A bonus is payment that a nurse earns, and it should not be tampered with! Maybe someone with more experience with taxes can explain why this happens.

Uh, no. All compensation is payment that nurses (or any employee, for that matter) earn and is subject to taxation per the IRS standards. Bonuses are taxable income. It's the way the system works.