The bonus withholding is neither outstandingly good nor remarkably bad. It is 25%, the rate set by the IRS. If your current tax rate is lower, you get the difference back at the end of the year. If it is higher than 25%, you will end up paying more. It's that simple.
Either way, the $83 per hour proposal is a pay cut using the 75 hour model we base our months on. But if you consider how much you'll make in open time, as well as 401K company contributions, it isn't all that terrible, actually.
Originally Posted by
SirLurksalot
A thought for those more knowledgeable than I am, given the difference in how egregiously the bonus we currently have in place is taxed vs actual hourly pay, would the proposed 83 hr credit rate to break even really be that big of a difference for someone who credits 75 consistently now with the bonus scheme in place?