Comments (61)

Feb 19, 2018 - 8:59pm

The big machine that taxes us (shout out big government) doesn't know the difference between bonuses and paychecks. It taxes you automatically, then when you do your taxes it pays you back the amount they overtaxed you. This is what happened. Most companies pay their employees every two weeks, so the IRS taxes you like that. If you got a $10,000 signing bonus, the big "machine" is going to think that every two weeks you are getting a paycheck from your bank of $10,000. So over 52 weeks in a year that amounts to 26 pay periods for a pro rates base salary of $260,000. So you got taxed as if you were making $260,000. When you do your taxes at the end of the year, it will adjust and the Government will give you a refund.

We're not lawyers. We're investment bankers. We didn't go to Harvard. We Went to Wharton!
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Controversial
Feb 16, 2018 - 9:19am

lol welcome to the real world kid. Better think twice next time you vote dem.

“Elections are a futures market for stolen property”
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Dec 27, 2018 - 6:54pm
Esuric:

lol welcome to the real world kid. Better think twice next time you vote dem.

The Republican Party did such a fantastic job the past 2 years fixing the tax code with all 3 branches of federal government under their control. Thanks Republicans!

It's amazing how you lemmings just blindly follow the Republican Party no matter what they actually do.

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Feb 16, 2018 - 9:41am

That seems a little high. But your bonuses are, depending on employer, often withheld at the highest possible incremental amount. That seems to be what your employer did (37% federal + 8.8% ny state + 3.8% nyc). For you to actually pay that much in incremental taxes you'd have to make $1.1m or more (for the state amount) and $600k+ (For the federal amount). And obviously your effective rate wouldn't be that high because that's just the marginal rate.

It seems like your employer is being ultra conservative, which sucks for you. But you'll get much of it back.

Feb 20, 2018 - 8:11am
iggs99988:

That moment a democrat becomes a republican

That would be a very uninformed decision given that Republicans are no better than Democrats on this and often much worse, preferring to blow up the deficit to allow future generations to deal with it.

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Feb 20, 2018 - 11:31am

Sadly, the deficit is just a point that both parties use to point fingers at each other when they are out of power. SB given.

Only two sources I trust, Glenn Beck and singing woodland creatures.
Dec 27, 2018 - 4:55pm

Kind of upset your rip-off comment got more SBs than the original (my comment).

“Elections are a futures market for stolen property”
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Feb 16, 2018 - 11:58am

Everyone on here is right, but I'll add a little bit more detail.

Most places treat a bonus like a paycheck. So say you get paid every 2 weeks (26 times a year) and it's 5k of gross salary per check, they'll calculate your taxes as a $130k/year salary. Then, if you get a $30k bonus you'll get withholdings like you make $780k/year (30k*26). Like everyone says, this works itself out when you actually pay your taxes, but this is why you're normally taxed at a higher rate on a bonus.

Also, look to see because that might include 401k witholding or anything else you've got going on.

Beyond that....you're in NY and you got a bonus, this is pretty standard stuff. I have a bad feeling that the next President will be looking to take more of the $.

twitter: @CorpFin_Guy
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Feb 20, 2018 - 12:39am

I believe the correct term is billions, billions depending on you.

Follow the shit your fellow monkeys say @shitWSOsays

Life is hard, it's even harder when you're stupid - John Wayne

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Feb 19, 2018 - 9:18pm

This vile creature. This picture is scary.

accountingbyday is absolutely right. The next president will be a lefty. America is being flooded by people from 3rd world shitholes (I came from one, so Fk off!) who will demand more government services and higher taxes on working professionals.

The future is very bleak.

Dec 28, 2018 - 6:51pm

They immigrate here so they can vote to make this country more like their home country---the one they fled from.

Array

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Feb 16, 2018 - 4:18pm

What concert costs 45 cents? 50 Cent feat. Nickelback.

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Feb 20, 2018 - 11:30am

Shouldn't you be paying taxes on your side income as well?

Only two sources I trust, Glenn Beck and singing woodland creatures.
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Feb 19, 2018 - 8:58pm

See my comment here for some tips on how to keep a bit more of your check instead of having to wait for your tax return.

But yeah, as others have said, if you live in NY / CA you best get used to all-in tax rates creeping towards 50% or more.

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Feb 21, 2018 - 3:44am

Thank you for the link labanker . I am looking through it.

Live on your bare minimum and do the deductions so you get a nice return?

Doing any sort of OT, I get taxed a lot more.

No pain no game.

Feb 20, 2018 - 1:39am

*Father and son are walking in the city one day and see a homeless man. They return home and the son asks if they should give the man some money the next time they are in the city.

The father says:

"Alright son, I'll tell you what. You mow the lawn tomorrow and I'll give you $20 that you can give to the homeless man".

The son responds:

"Well why doesn't he just come over and mow the lawn for the money"

Father smiles and says:

"Welcome to the Republican Party"

Mar 14, 2018 - 7:41pm

Either Republican or Democrat both should see a neurosurgeon for the lack of both hemispheres of the brain from communicating, A ophthalmologist because of their nearsightedness and an E.N.T (figure that one out), because both parties get paid from every trough they can get their lips on.

The father never considered the homeless man could have been a veteran or even bipolar. He just blames the nearest person he is able to see because of his lack of introspection based on avarice.

Mar 14, 2018 - 9:15pm

Impressive, plugging a completely moronic argument into a thesaurus makes it sound even more ridiculous...

What exactly do you think are the flaws in Republicans / Democrats that result from a "lack of both hemispheres of the brain from communicating"

Since you seem to be such an intellectual I'd like to point out that your message should have read "An ophthalmologist"

Also the ENT argument was cute, I suppose. Spruced up ad hominem attacks insinuating that both parties suck ye ol proverbial dick to get paid just completely detracts from whatever argument you were trying to make initially.

Thanks for educating me though. It was a fun little joke implying that everyone wants to "make the world a better place" so long as it isn't them that has to pay for their insane plans. So what, we give preferential treatment to veterans and bipolar homeless individuals? Is my joke any less offensive if the individual was just a bum and not a vet / mentally suffering? Does the fact that hes a vet in this example of yours detract from the notion that he could come and, oh, I don't know, work for $20?

Anyways. I ranted long enough. Either this was truly your first post and you wasted it on a half- assed "burn" or you made a new account specifically to reply to the joke. I'm not sure which one is more pathetic...

Mar 15, 2018 - 2:49am

Once someone shared with me, "When someone responds profanely it is because you have exhausted the persons limited knowledge on a subject." So I read and listen to others to get understanding. So that I can have an answer, instead of blaming other people for issues in my life. The poor have nothing because they choose not to work or they may have disabilities. But for an able bodied person to blame others, they are just as lazy as those they point a finger.

Feb 20, 2018 - 11:29am

F-35's, welfare, police body cams, roads, Obamaphones, green energy subsidies, health insurance mandates and congressional pensions do not pay for themselves!

Only two sources I trust, Glenn Beck and singing woodland creatures.
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Feb 21, 2018 - 3:36am

Now now, according to the news, the rich dodge taxation and does not pay their fair share of taxes despite being taxed to death already.

roll eyes

No pain no game.

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Feb 21, 2018 - 3:59am

This is a classic partisan issue: the immediate surprise plays to GOP populism but after a delayed process (taxes) you'll get a chunk back, and once you start utilizing the various tax shelters + deductions available to you...it will change your perspective on what you're actually paying. It's almost as if critical thinking is a partisan issue.

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Feb 21, 2018 - 2:38pm

Alright I'm not going to lie I posted that joke because I heard it somewhere and thought it would get a chuckle out of some people.

I generally lean independent but lets be real with all of the academics / intellectuals / high striving individuals on here can't we all agree Trump is intellectually and physically the WSO equivalent of a BO moron that thinks hes the shit and just immensely misunderstood / never given a chance.

Feb 21, 2018 - 2:57pm

According to your post history you are 25 years old, quit finance because you "couldn't handle the grind", looking for a roommate in SF, that thinks hes better than everyone else and posts troll responses.

Yeah you're definitely one of those idiots that justifies our tweeter in chief's stupidity with the fact that hes rich.

You also couldn't "move up in finance" (either you are a BO moron like the rest of us, or even more pathetic, a FO idiot that thought he was the shit but couldn't cut it)

Good luck in SF, I'm sure all the liberals in Cali will have a field day with you.

Feb 25, 2018 - 1:41pm

Must have something to do with the SALT (state and local taxes) tax in addition to the tax differential between base pay and bonus pay. In fact, I think you guys get charged both a NY state tax, and depending on where you live, you may be getting charged a NYC tax as well.

Anyway, in Kansas City, if I work within the city limits of KC, I pay the city tax. If I'm out of town, not working in KC, the tax gets waived. My first year, I received both a signing bonus and a production bonus, but neither were really big enough for me pay that much attention.

The next year, I received a production bonus again at the end of the year. It was then that I realized how differently the IRS taxes bonuses as opposed to straight pay. My percentage was not 51%, but it was well north of 40. It took a couple of years, but I kept playing with my withholdings until I got to the point where, even with the bonus, I typically owed around $500 - 1k between state and fed every year. However, it took me claiming 16 fed and 8 state, if I recall correctly. It's been nearly 10 years now.

It's not a bad problem to have, and getting a big chunk at the end of the year helped make sure I had enough to completely max out funding my 401k and ROTHS for both my bride and me each year. Still, when you really get to see just how much of a greasy, wet bite the government takes from us tax-payers, it seems damned near criminal.

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Mar 15, 2018 - 9:16pm

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Sep 21, 2018 - 4:51pm

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