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Bonus Payment taxation? Federal

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  • Bonus Payment taxation? Federal

    Hello,

    Our HR department wants to pay some PT hourly employees a bonus payment for remaining on staff for a program that is being cut. I guess for not jumping ship when they could have. The bonus does not tie to hours worked or tie to their hourly rate.

    Would these bonus payments be Supplemental wages?

    John

  • #2
    Yes. ............
    "Reality is that which, when you stop believing in it, doesn't go away".
    Philip K. **** (1928-1982)

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    • #3
      Originally posted by DAW View Post
      Yes. ............
      Thanks!
      I knew you would have the answer.

      -John

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      • #4
        The short answer: Don't rush to tally the approaches to spend that cash. Regardless of whether you're certain you'll get a reward, recollect that the taxman gets a piece before it even contacts you. What's more, due to the way rewards are at first exhausted, you may see a higher-than-ordinary withholding when you get that additional compensation.

        When all is said in done, the government supplemental duty rate of 22 percent applies, in addition to Social Security, Medicare, joblessness and your relevant state and nearby expenses Buy Coursework Help. The government rate might be pretty much than your standard elected, state and nearby withholdings, contingent upon your salary level.

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