Taxes - Ouch

[AcctNerd]

As previously mentioned, the Percentage Method for Bonuses withholds federal income taxes at 25%. Then you have Georgia income tax withholding at 6% and FICA/Medicare at 7.65%. This results in withholdings of 38.65% as you alluded to. You should get some of the federal withholding back when you file your income tax return, depending on your income level and tax bracket.

 

[Alphacpa]

My boss talked with HR and found out that the government decided that to stick it is FICAiio the Wall Street guys that get huge bonuses so the Fed takes 25%off the top then you pay out your normal taxes. My thing is why didn't they set that to scale?

That is not correct. If yo u want zero in fed and state tax withheld then that is fine. Only mandatory is SS and medicare. If you have earned over $117000 then no SS withholding as you have paid the max as an employee.

 

[MilSpec308]

I am amazed at how many people don't realize how much they pay in taxes

The "Rich" those over 250k pay almost 50% when you add state and local

this does not count
Property
Sales
misc other items

Corp taxes we all pay in the products we buy

Mad yet?

true but with corporations, you have a lot of tax loopholes an with write offs, you can easily pay a lot less that what should normally be paid...any good accountant will tell you that

 

[TresMonos]

A bonus is in many ways like hitting the lottery...you'll only receive about half.



Not really, you should get part of the balance back as a refund after giving Uncle Sam an interest-free loan.

I get an annual bonus in March each year. It is significant.... At the end of Feb I change my withholding to exempt and once the bonus is paid I change it back. Uncle Sugar does not deserve an interest free loan and since we always get a refund I am not going to wait for a portion of it to come back in a year...

 

[sold7]

Almost 50%?? Try over 50%. It's not just the evil rich; small business owners get hosed. Out of every dollar I make, .52 is taken away by some form of taxation. For the first 6 mos of the year, I work to pay taxes so lazy folk can protest and get their gubment checks.

Yep Have owned 5 small businesses down to just 2 now (getting old)

I am well aware how much I pay or have paid in the past. (try selling a business they will tax you again). Most people just believe the media crap about "the evil rich" . They start depreciating your deductions after a curtain point. If you own a buisness you have to pay self employment part of social security

If people ever wake up an really understand how much try really pay to how much hey get for it maybe there would be some change.

Tax those evil businesses they say. You can't tax a business you can only tax it out of business. (Most will not understand this)

rant over

 

[GeauxLSU]

true but with corporations, you have a lot of tax loopholes an with write offs, you can easily pay a lot less that what should normally be paid...any good accountant will tell you that

Corporations don't pay taxes. Customers do.
The 'write off' mantra is played out. The facts remain, the very few pay a hugely DISproportionate share of the taxes in this country.

 

[sold7]

true but with corporations, you have a lot of tax loopholes an with write offs, you can easily pay a lot less that what should normally be paid...any good accountant will tell you that

You can't tax a business only tax it out of business. think about it

 

[sold7]

Corporations don't pay taxes. Customers do.
The 'write off' mantra is played out. The facts remain, the very few pay a hugely DISproportionate share of the taxes in this country.

Winner!!!! gets it right

 

[Lazarus]

As previously mentioned, the Percentage Method for Bonuses withholds federal income taxes at 25%. Then you have Georgia income tax withholding at 6% and FICA/Medicare at 7.65%. This results in withholdings of 38.65% as you alluded to. You should get some of the federal withholding back when you file your income tax return, depending on your income level and tax bracket.

I didn;t know there were actual percentages, I thought it scaled with your salary but yea you're right.

I should get something back. We usually get a modest refund so this will hopefully add to it.

 

[MilSpec308]

You can't tax a business only tax it out of business. think about it

exactly....the point of the corporation is to use as many benefits of write offs an expenses before paying out to taxable parties...I use dinners, office supplies, rent, travel, financing/leasing, corp loss, etc., all towards right off