CompensationDec 7, 2018
PinterestukYQ66

Sign in bonus ridiculous taxing

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

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P=/=NP Dec 7, 2018

That’s ridiculous.

Sony Kbfeghd Dec 7, 2018

Is it all taxes ? Did you check if there was some 401k or anything else ?

Pinterest ukYQ66 OP Dec 7, 2018

It's all taxes

Google qEGt36 Dec 7, 2018

YOE?

Pinterest ukYQ66 OP Dec 7, 2018

Does that matter for my taxes or are you just bored?

Google qEGt36 Dec 7, 2018

It matters.

Microsoft Gubbins 🤺 Dec 7, 2018

You will probably get a tax refund. No worries.

Workday VsRh83 Dec 7, 2018

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

Google UUKg61 Dec 7, 2018

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.

Google t5y6u7 Dec 7, 2018

OP never said US. Could be one of those socialist countries with shit taxes

Synopsys sw100 Dec 7, 2018

Like France. But in this case OP will have 2 months of paid vacations

Google DayNNight Dec 7, 2018

Just say “taxing is ridiculous” It’s cleaner.

Nvidia Mhfdf584 Dec 7, 2018

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.

Oath fat Dec 7, 2018

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.

Spotify S. Archer Dec 7, 2018

Are you in Sweden? Sounds like Sweden.

Spotify WizzAir Dec 7, 2018

Swedish companies don't give bonuses like that tho

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SANTA 🎅 Dec 7, 2018

I used to have a business in Sweden :) I didn’t enjoy the +50% taxes. Now I have a business in the US! 🎅