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You’ve probably wondered why your bonuses are so heavily taxed. It’s all in the tax law. There are two methods to determine bonus withholding. One method is called the Percentage Method; the other is the Aggregate Method.
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www.pfadvice.com/2007/03/09/why-are-bonuses-so-heavily-...
www.pfadvice.com/2007/03/09/why-are-bonuses-so-heavily-taxed/
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Your bonus is taxed as: ... Supplemental income. State supplemental tax rate % ... Your pay period frequency...
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calculators.aol.com/tools/aol/paycheck04/tool.fcs
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Because the rates are graduated, only a portion of your salary is taxed at 31%; the rest is taxed at lower levels. In the end, your tax bill actually will be lower than if you'd applied a flat rate. ... Note: 401(k) contributions typically are taken out of bonuses.
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www.thestreet.com/funds/taxforum/990258.html
www.thestreet.com/funds/taxforum/990258.html
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Bonuses are usually taxed at a higher rate because the bonus is considered supplemental income. The Federal rate is 25%. Social Security taxes are still deducted. I have no idea what the rate is in MD.
http://answers.yahoo.com/question/index?qid=20071218204...
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I have not seen any mention of an option... if the company has it... My old company allowed the higher ups to defer some or all of their bonus to a later year... they had to make the option prior to it being awarded and it was binding on th...
http://www.early-retirement.org/forums/f28/how-are-bonu...
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Not only are bonuses taxed, but they're taxed differently from normal income. I got at $15000 bonus at year end ( <3 finance industry) and only took home about $9k of it thanks to the gov't. Expect to lose about 1/3rd of what your bonus is.
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episteme.arstechnica.com/eve/forums/a/tpc/f/34709834/m/...
episteme.arstechnica.com/eve/forums/a/tpc/f/34709834/m/664002093731
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As a result, the computer withholds a huge amount of your money for taxes, even though you're not really earning enough to be taxed at that higher reats. Consequently, you can have as much as half of your bonus check withheld for taxes.
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www.oakwoodgroup.com/bonus.html
www.oakwoodgroup.com/bonus.html
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Grassley has been outspoken in demanding that AIG withdraw the bonuses, even suggesting in an Iowa radio interview that AIG executives might honorably kill themselves. He then said he didn't really mean it.
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Eleven AIG execs who got $1 million-plus "retention" bonuses to keep them at the firm have already left - including one who walked away with $4.6 million. ... Eleven AIG execs who got $1 million-plus "retention" bonuses to keep them at the firm have already left - including one who walked away with $4.6 million.
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www.nydailynews.com/money/2009/03/17/2009-03-17_aig_bon...
www.nydailynews.com/money/2009/03/17/2009-03-17_aig_bonus_checks_may_be_taxed_at_up_to_1.html
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