Can someone tell me what’s the tax on sign on bonus of $50K in California (Menlo Park)?
same as salary. nothing different. Treated as income and one time extra salary
So what’s the tax % for that?
Well, we’ll need your TC for that 🙂
Divide by two
Why 2?
Okay, divide by 3 and give me 1/3rd then.
Its based on your marginal tax rates. I beleive what you are probably asking is how much youd get in hand as soon as the bonus hits ? Bonus are considered supplemental wages, hence the tax WITHHOLDING is based on supplemental withholding rates. 22% Federal 10.23% CA FICA - around 7% . Deduct about 38% and you’ll have yoir answer
I m actually joining FB and it’s for FB sign on in Menlo Park. Was it the same for you?
Yes. Got ~ $29k in hand IIRC
The withholding is as if you were making that much for every paycheck. So expect to be the highest marginal tax rate so 50%.
They will withhold at 50% but that’s not your tax rate .
Your tax bracket is determined by your total income. Getting more money might put you to a 45% federal income tax. Then state taxes on top….
Wtf! My total Comp is 480K. After hearing all the tax rates I feel very poor working at FB.
Selling stocks for profit or even cashing 401k count as “income”, and can put you in a different bracket
Mine is 41% tax for CA. Single, no kids. TC 260k
Jeez. How are you planning to buy a house with those tax rates ?
This sucks man! We are homeless, poor, street kids of Bay Area. At this comp and salary I will never be able to retire in bat area 😭😭😭
I am sure OP might be wondering he’s taxes at 45% instead of understanding that his taxes are being withheld at that rate. OP, I’ll explain the difference between the two to you, but you got to share your TC and YOE first. No free lunches buddy. :)
Dude I know the difference lol you aren’t the only one raking in some Bay Area moolah lol
I usually just brace myself for 35-40%