Taxation of Comission and Bonus Pay
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Thread created 01-26-2013 by Dem Bums
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Yes, they are withheld at the maximum rate, and you will get back the difference between the highest bracket and your bracket.
Taxation of Comission and Bonus Pay
Expired
Thread created 01-26-2013 by Dem Bums
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Yes, they are:
http://blog.turbotax.intuit.com/2011/12/09/bonus-time-how-bonuses-are-taxed-and-treated-by-the-irs/
I have worked in HR for a number of years, they are almost always taxed at the...
Taxation of Comission and Bonus Pay
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Thread created 01-26-2013 by Dem Bums
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Don't check the exempt box and just dramatically increase your allowances.
Taxation of Comission and Bonus Pay
Expired
Thread created 01-26-2013 by Dem Bums
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Any bonus or off pay period check I receive is usually taxed around 40%.
I have before gone into my W4 at work and changed my status to "exempt" for that one pay check, then changed it back. Not...
Taxation of Comission and Bonus Pay
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Thread created 01-26-2013 by Dem Bums
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Thanks. This is what it says on my W4. I don't think I actually meet this criteria.
Exempt from Withholding
I claim exemption from withholding for 2013, and I certify that I meet BOTH of...
Taxation of Comission and Bonus Pay
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Thread created 01-26-2013 by Dem Bums
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Isn't all this just about how the IRS calculates the withholding from a bonus payment? Isn't a bonus or commission treated like ordinary income when it comes to actually filing your tax return?
Taxation of Comission and Bonus Pay
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Thread created 01-26-2013 by Dem Bums
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I don't see any ethical issues with this. You're simply opting out of giving the government and interest free loan. As long as you're paying the taxes that you are required to and not grossly under...
Taxation of Comission and Bonus Pay
Expired
Thread created 01-26-2013 by Dem Bums
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Depends on your situation (since I lack the specifics). Go play around on www.paycheckcity.com to see the impact.
Taxation of Comission and Bonus Pay
Expired
Thread created 01-26-2013 by Dem Bums
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19 Replies
1,854 Views
No they are not almost always taxed at 25%. Generally the application of the aggregate rule is correct. There are only a few instances where you can use the percentage method. The instances where it...
Taxation of Comission and Bonus Pay
Expired
Thread created 01-26-2013 by Dem Bums
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I've done a bit of reading but I thought I would come to the pros for an answer. About a third of my gross pay is from commissions and bonus pay but they're taxed at a much higher rate than my...
Taxation of Comission and Bonus Pay
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Thread created 01-26-2013 by Dem Bums
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Can you elaborate on this? I don't quite understand. I don't think I have any exemptions on my W4 now.
Taxation of Comission and Bonus Pay
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Thread created 01-26-2013 by Dem Bums
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If you adjust your exemptions up when you get the large checks there will be less withholding of taxes. No point in giving the government an interest free loan.
Go here: www.paycheckcity.com and...
Taxation of Comission and Bonus Pay
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Thread created 01-26-2013 by Dem Bums
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There is a HUGE difference between what is withheld from your check and what is tax. Bonuses are earned income, thus treated the same as any other income. Like others have said the withholding gets...
Taxation of Comission and Bonus Pay
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Thread created 01-26-2013 by Dem Bums
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how dramatic would you say, pirates?
Taxation of Comission and Bonus Pay
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Thread created 01-26-2013 by Dem Bums
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Partially, but that is not the whole explanation. Bonuses are taxed at a higher rate per the IRS.
Taxation of Comission and Bonus Pay
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Thread created 01-26-2013 by Dem Bums
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The excessive withholding is usually due to the way your company's payroll software deals with paying you at different intervals. For instance, your regular salary is paid weekly, so the lsoftware...
Taxation of Comission and Bonus Pay
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Thread created 01-26-2013 by Dem Bums
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Delete
Taxation of Comission and Bonus Pay
Expired
Thread created 01-26-2013 by Dem Bums
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19 Replies
1,854 Views
No they're not.
Taxation of Comission and Bonus Pay
Expired
Thread created 01-26-2013 by Dem Bums
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19 Replies
1,854 Views
No they are not.
Taxation of Comission and Bonus Pay
Expired
Thread created 01-26-2013 by Dem Bums
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19 Replies
1,854 Views
It's taxed higher because of the amount on one check, so the withholding rate increases. You can plan for these events and change your W4 every time you receive your commission/bonus payment.
