Ca$h, a$$ or bonu$e$ no one rides for free
01-23-2019 | 06:10 PM
#13
Gets Weekends Off
Joined: Sep 2016
Posts: 1,957
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Extremely easy to qualify for the EQO. You hardly have to pay any attention to it at all.
Even calling out sick doesn’t affect it as long as you use your sick bank.
Just don’t call it a bonus, or else the IRS will come in and withhold taxes at a higher rate and keep a bigger chunk of that money until next year’s tax season.
Even calling out sick doesn’t affect it as long as you use your sick bank.
Just don’t call it a bonus, or else the IRS will come in and withhold taxes at a higher rate and keep a bigger chunk of that money until next year’s tax season.
01-24-2019 | 07:55 AM
#15
Gets Weekends Off
Joined: Mar 2017
Posts: 559
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If you select to withhold less than 90% of your income taxes the IRS will come after you with penalties and interest. I am not very familiar with the bonus withholding law, but I’m guessing we have even less flexibility on that.
01-24-2019 | 08:21 AM
#16
Gets Weekends Off
Joined: Sep 2016
Posts: 1,957
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How? Your employer determines how much is taken out of each check based on your W-4. Some employers decide to take bonuses out at the supplemental 25% because it can sometimes result in actually withholding less than the aggregate method. The IRS doesn't force a company to withhold at that flat 25%. They have the option of a 25% withholding OR by simply adding it into your paycheck and withholding the same way as normal pay. As long as you aren't underpaying your taxes they don't care.
Now, if you withhold less than you owe the IRS, then you're going to be in trouble.
https://www.irs.com/articles/withholding-tax-basics
Now, if you withhold less than you owe the IRS, then you're going to be in trouble.
https://www.irs.com/articles/withholding-tax-basics
01-24-2019 | 09:21 PM
#17
Gets Weekends Off
Joined: Aug 2009
Posts: 511
Likes: 0
How? Your employer determines how much is taken out of each check based on your W-4. Some employers decide to take bonuses out at the supplemental 25% because it can sometimes result in actually withholding less than the aggregate method. The IRS doesn't force a company to withhold at that flat 25%. They have the option of a 25% withholding OR by simply adding it into your paycheck and withholding the same way as normal pay. As long as you aren't underpaying your taxes they don't care.
Now, if you withhold less than you owe the IRS, then you're going to be in trouble.
https://www.irs.com/articles/withholding-tax-basics
Now, if you withhold less than you owe the IRS, then you're going to be in trouble.
https://www.irs.com/articles/withholding-tax-basics
01-25-2019 | 01:23 AM
#18
Gets Weekends Off
Joined: Sep 2016
Posts: 1,957
Likes: 0
They determine whether to use the aggregate method or flat 25% for bonuses.
