Comment on But how would they be able to live on that?

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JasonDJ@lemmy.zip ⁨6⁩ ⁨months⁩ ago

Bonuses 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.

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