I count on my bonus money as part of my salary. I just recieved it for 2012 and since its considered commision or bonus I am taxed at a differnt rate. 48%
HALF of the money is tax. HALF!!!! I work my butt off and they take half of it away. The reality of this countries troubles just hit me like a brick. We are in trouble.
Your company can change that. If everyone agrees to not have any tax taken out.
‘course the end of the year won’t feels so good. 
Doesn’t change your tax rate, it’s just a different withholding rate! Congrats on the bonus, you could be looking for work like me!!
ET
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Doesn’t change your tax rate, it’s just a different withholding rate! Congrats on the bonus, you could be looking for work like me!!
ET
Sorry to hear that.
Yeah, my bonus gets pilfered, too. It’s sad how little of it I take home. 
Of course, I am lucky to have a good job, but…
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I count on my bonus money as part of my salary. I just recieved it for 2012 and since its considered commision or bonus I am taxed at a differnt rate. 48%
HALF of the money is tax. HALF!!!! I work my butt off and they take half of it away. The reality of this countries troubles just hit me like a brick. We are in trouble.
It is all because your normal pay is based weekly of bi-weekly, thus when they calculate your bonus pay it enters the system as 1/52 or 1/26 of your annual and they calculate the tax as if you are getting that every week or 2-weeks throwing it into a much higher tax bracket.
Look at your 2012 Tax Return and figure your actual tax rate. That may surprise you as way too much going to help people that many won’t help themselves.
Sounds like your company classifies this as deferred comp and you are taking the money early. 10% of that is not tax it is an IRS penatly. You should be able to defer payment and not pay any tax in this year. (Defer until after age 59 1/2)
If not, they are witholding the 48% based on an interpolated annual income. You will get the difference refunded when you file.
-J.
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I count on my bonus money as part of my salary. I just recieved it for 2012 and since its considered commision or bonus I am taxed at a differnt rate. 48%
HALF of the money is tax. HALF!!!! I work my butt off and they take half of it away. The reality of this countries troubles just hit me like a brick. We are in trouble.
Welcome to the screwed over club. As much as I am a hard core American. I really hate parts of it like the IRS and Tax code. Hence the reason I seek out every single legal tax shelter, loop hole, tax credit and deduction I can.
The closer I can get my AGI to $0.0, the happier I get.
I don’t even check the reciepts but do they tax bait yet? Taxation without representation is starting to manifest itself again.
Like they said, they take 48% now, but you’ll get back the difference at the end of the year. Of course the difference you could have been using to earn interest instead of the government.
Just did my taxes a while ago. It is amazing how much they do take. Too bad that instead of withholding they didn’t give you all your money and then send a check in to the governments after every payday. Things might be a little different…for those of us who do pay taxes.
If your bonus was large enough to have you paying in to much in withholding you could change your dependancy exemptions with your employer to have less taken out for the rest of the year.
But yeah, it’s a crummy time of the year to get a bonus. Probably a pipe dream to have your employer do it prior to year end?
About half of my income is monthly bonus. I see about 42% withheld. It works out ok, we usually get a few grand back at the end of the year because my wifes company never seems to take enough out. It works out ok so we haven’t messed with it much. If we were consistently getting 3K or more back, I’d change my elections in a heartbeat.
Every tax season we tend to get frustrated when we see how much we pay in taxes and how much our low income friends and acquaintances get back in tax refunds (usually as much as I pay in or more). Pretty upsetting until we realize I would happily keep our six figure income and pay higher taxes vs making 12k per year and getting a 10k tax return. It helps to put things in perspective.
It is however little comfort to stem the frustration we get watching our gov’t act so foolishly.
Here is to hoping for a “fair tax” system or even a “flat tax” system.
It’s the new normal. I can’t believe your complaining about giving the government some of their money back. How do you expect them to do all of the wonderful things they do. If you had a heart in your chest, you should take the rest of the money Obama let you keep and go give it out to any of your neighbors that need it more than you do. 
im union no bonuses the way it should be.
Eliminate all loopholes and call it good! Well, at least better.
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Here is to hoping for a “fair tax” system or even a “flat tax” system.
Be careful what you wish for. Some projections of the rate for a “flat tax” system are downright scary.
Don’t worry Obama is spending it wisely.
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Don’t worry Obama is spending it wisely.
He wants $100M to have Google map the brain.
Slightly off topic. How can he appropriate money without submitting a budget?
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Here is to hoping for a “fair tax” system or even a “flat tax” system.
Be careful what you wish for. Some projections of the rate for a “flat tax” system are downright scary.
Is this the flat tax that Jesse was pushing for ? I’d love it. If you work you don’t get taxed, if you spend, you get taxed on what you buy and there is no “filing” (aka cheating) to get some of that back at the end of the year. This would have anyone who buys anything, (everyone) paying their share at the rate they desire. Even the drug dealers and hookers would be paying in 
I love the idea 
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Is this the flat tax that Jesse was pushing for ? I’d love it. If you work you don’t get taxed, if you spend, you get taxed on what you buy and there is no “filing” (aka cheating) to get some of that back at the end of the year. This would have anyone who buys anything, (everyone) paying their share at the rate they desire. Even the drug dealers and hookers would be paying in
That would be a national sales tax. Some projections for that are just as scary…close to 50%. I don’t want to pay 50% more for everything I buy.
Police, Fire Pension Shortfall Would be Helped by Insurance Surcharge
A new, $5 surcharge would be placed on automobile and homeowners insurance policies to help pull the state police and fire pension plans out of a deep shortfall, according to a bill that has shown support from House and Senate committees and lawmakers of both parties.
Under the proposal (HF857/SF935), the surcharge would contribute $23 million annually to the Public Employees Retirement Association’s Police and Fire Plan.
The PERA plan is projected to have a $64 million a year funding shortfall for the next quarter century – until 2038.
Another $66 million, according to PERA estimates, would be generated annually by cutting retiree benefits, increasing contributions, and raising the penalty for early retirement among other reforms, that passed the Legislative Commission on Pensions and Retirement Thursday evening.
“If they hadn’t been willing to do most of the heavy lifting and literally come up with 80% of the solution on their own, I wouldn’t be the author of this bill,” declared Rep. Joe Atkins (DFL-Inver Grove Heights), the bill’s chief author in the House.
The Insurance Federation of Minnesota opposes the bill for a host of reasons, including the added cost – insurance policy holders already pay a percentage of their premiums into the pension funds – and the pool of who would pay.
“Really, it’s a very small number of people who are being asked to pay for this when it should be everybody,” explained Insurance Federation spokesman Mark Kulda, who called the legislation “a very bad idea” and “bad public policy.”
“What we’re worried about… is that it won’t be $5, it’ll be $10, $20, $50. There’s nothing stopping them from increasing the amount once they get the surcharge in place,” Kulda warned.
The Federation is considering a statewide advertising campaign to oppose the bill, Kulda said.
Click here to learn more about the bill. Link to HF0857 for more information
Yes, Writing my Legislators opposing this.
Cut the Pensions, quit giving them raises when there is no money. 
the Government is always for more of our hard earned money.
Stop ALL Public Pensions starting with the Legislators & Governor 1st.
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Don’t worry Obama is spending it wisely.
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Even the drug dealers and hookers would be paying in
Yeah, because if you legalize it, of course criminals willing be willing to pay the government the tax on service they are payed for.
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I count on my bonus money as part of my salary. I just recieved it for 2012 and since its considered commision or bonus I am taxed at a differnt rate. 48%
HALF of the money is tax. HALF!!!! I work my butt off and they take half of it away. The reality of this countries troubles just hit me like a brick. We are in trouble.
Speak to your accountant if you have one but as others have eluded to I believe its just an over inflated rate of tax because that bonus is a much larger sum of money in two weeks than you are usually making, so in turn the rate has to be adjusted up to assume you make that much year around( but only on those amounts above normal) So in the end it all works out and if you add up all of your yearly earnings it puts you into a bracket and things are adjusted back to the yearly earnings total. So basically you get back most of what was taxed over your standard tax rate(28%-?)
And let me also say, by no means am I in favor of our government or sticking up for the clowns
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Even the drug dealers and hookers would be paying in
Yeah, because if you legalize it, of course criminals willing be willing to pay the government the tax on service they are payed for.
Naw, they would hide their income and taxes, just like all the loop holers…. but there is no hiding the tax they have to pay for their condoms and needles 
50% …lets think about that… you pay about what close to 40% now in income taxes, then that gets hit again when you buy something at 7-8%…. pretty close to 50% already. I doubt it would be 50% if EVEYBODY had to pay on what they bought 100% of the time I bet it would be closer to 35-40% in the end.
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Naw, they would hide their income and taxes, just like all the loop holers…. but there is no hiding the tax they have to pay for their condoms and needles
They don’t buy condoms and needles now?
Not sure what you are pushing in the second part? Flat tax?
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