Yearly Bonus Ripped Off?

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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.

Specializes in Oncology.

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.

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Specializes in Nurse Leader specializing in Labor & Delivery.
You need to change your title, ******* is a racist and offensive term.

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

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Specializes in Complex pedi to LTC/SA & now a manager.

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.

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Specializes in Nurse Leader specializing in Labor & Delivery.

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.

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Specializes in Pediatrics, Emergency, Trauma.

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:

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Specializes in Pedi.
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.

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Specializes in Complex pedi to LTC/SA & now a manager.
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.

It's relative whether less would be deducted via single check depending on the amount. It's still subject to income taxes SSA etc

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Specializes in Critical Care, ED, Cath lab, CTPAC,Trauma.
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 Jewed them down." Please, it's gross.

I am actually part gypsy....my Hungarian grandparents/parent. I have never been offended by this nor even realized it was insulting to gypsies. Live and learn.

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Specializes in Critical Care, ED, Cath lab, CTPAC,Trauma.
cd365c

 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.

Because if it is over $500.00 it is income. It is called taxes. They are the IRS.
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I am actually part gypsy....my Hungarian grandparents/parent. I have never been offended by this nor even realized it was insulting to gypsies. Live and learn.

I agree. In addition, I really don't think the OP purposefully used it as a racist term. I didn't read that at all when looking at the title.

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Specializes in Nurse Leader specializing in Labor & Delivery.

I'm sure that the OP did not use it purposely to be racist. It doesn't make any less a racist term, and I think that anyone who is using a racist term without realizing it's loaded would want to know.

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I had no idea it was racist! I just thought it was a word... good to know.

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