So I just got a sign in bonus paid out on a separate direct deposit along with my first paycheck, and I literally got taxed more than I took home? It was for 27000 and I took home like 12800... Is that suppose to happen ever, that I would get taxed more than the amount I take home? TC 310k
Is it all taxes ? Did you check if there was some 401k or anything else ?
It's all taxes
YOE?
You will probably get a tax refund. No worries.
The way taxes get calculated in payroll is - it looks at your current periods earnings and annualizes it - so, if you are paid monthly; it thinks your take home pay is 27k*12 and withholds taxes for that tax bracket - you will get this money back come tax time
This cannot be right. Is there a 52% tax bracket in US? Only this rate can explain what you are saying. Check with the company for proration or part payment.
Just say “taxing is ridiculous” It’s cleaner.
Usually, companies project your full year income using the current paycheck. In this case, they would see 27k x 12 = 324k additional to your annual base. So they withhold on the assumption of that bracket. Since this is withholding, you can get it back at year end since you’re overpaying.
Bonuses are “withheld” at a higher rate because you don’t need it as part of your day to day expenses. It’s taxed at the same rate as your regular income and you get it back on your tax return. It’s like you gave the government a loan.
That’s ridiculous.