when we getting bonus???/
01-10-2018 | 01:05 AM
#33
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Joined: Nov 2006
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From: A320 CA
Supplemental Wage Rate Changes
The supplemental wage withholding rate, which applies to nonregular “supplemental” wages paid by an employer such as bonuses and commissions also are to change under the bill.
The supplemental wage withholding rate for supplemental wages less than or equal to $1 million, using the flat withholding method, would increase to 28 percent under the bill. The rate is an increase from the current supplemental wage withholding flat rate of 25 percent, in effect since 2007.
Supplemental wage payments in excess of $1 million during the 2018 taxable year would be subject to a reduced rate of 37 percent under the bill, compared to the current rate of 39.6 percent.
01-10-2018 | 04:18 PM
#34
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Joined: Aug 2012
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The 28 percent rate is only the withholding rate. That is what your employer withholds from your bonus check, but at tax time it is taxed at your normal rate. In essence the government is getting an interest free loan, and then you get a bigger refund or pay less taxes when the time comes.
01-11-2018 | 04:30 PM
#35
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Joined: Jun 2015
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The 28 percent rate is only the withholding rate. That is what your employer withholds from your bonus check, but at tax time it is taxed at your normal rate. In essence the government is getting an interest free loan, and then you get a bigger refund or pay less taxes when the time comes.
01-11-2018 | 09:19 PM
#36
Gets Weekends Off
Joined: Jan 2016
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From Bloomberg on Dec 18, not sure if it made it into law though.
Supplemental Wage Rate Changes
The supplemental wage withholding rate, which applies to nonregular “supplemental” wages paid by an employer such as bonuses and commissions also are to change under the bill.
The supplemental wage withholding rate for supplemental wages less than or equal to $1 million, using the flat withholding method, would increase to 28 percent under the bill. The rate is an increase from the current supplemental wage withholding flat rate of 25 percent, in effect since 2007.
Supplemental wage payments in excess of $1 million during the 2018 taxable year would be subject to a reduced rate of 37 percent under the bill, compared to the current rate of 39.6 percent.
Supplemental Wage Rate Changes
The supplemental wage withholding rate, which applies to nonregular “supplemental” wages paid by an employer such as bonuses and commissions also are to change under the bill.
The supplemental wage withholding rate for supplemental wages less than or equal to $1 million, using the flat withholding method, would increase to 28 percent under the bill. The rate is an increase from the current supplemental wage withholding flat rate of 25 percent, in effect since 2007.
Supplemental wage payments in excess of $1 million during the 2018 taxable year would be subject to a reduced rate of 37 percent under the bill, compared to the current rate of 39.6 percent.
Thanks!
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