Originally Posted by
Xelectro
January, May, September. Advertised as 25% federal income tax, but What's not included is social security, fica, Medicare and in NYC also NY State and NYC tax. I had 47% income tax taken out of the last bonus.
And alpa, and if you put any in the 401k....
At the end of the year, yes, it's all taxed by you applicable rules, but you either need to be good at math for the W-4; (meaning you know what you will earn, and if joint, what your significant other will earn) or expect a refund OR owe more depending on your tax bracket. It's a flat 25% federal, then the rest (state, fica, ss, alpa, etc), and 401k if you so choose. Everyone's tax situation is different but the bonus requires some math, especially if you pick up often or have another variable that makes the W-4 a moving target for 24 regular checks.
At the end of the year it all lines up, but can be a bit skewed by individual bonus check.
"I was told there would be no math"