Comment on But how would they be able to live on that?
JasonDJ@lemmy.zip 6 months agoBonuses don’t get taxed any differently. What happens if your employers payroll software sees additional income above your wages and without any tax-exempt lines (like health insurance) subtracting from taxable income. It ends up calculating a higher tax rate.
Come tax time a dollar of income is a dollar of income. Your tax burden is calculated in total income and bonuses are treated no differently than wages.
bitwolf@lemmy.one 6 months ago
Doesn’t Section 31.3402(g)-1(a)(1)(i) state otherwise?
Bonuses are supplemental wages and are taxed at 25% unless you net over 1 million.
Section 904(b) of the American Jobs Creation Act of 2004 (Public Law 108-357, 118 Stat. 1418)