- EASA Requires Liquid Prohibited Zone On Airbus A350 by Sam Chui.
- Southwest Airlines To Share $667 Million With Its Employees by Simple Flying.
- New Boeing 737 MAX Software Problem Found by Travel Codex.
- Here is some information about the new business class seats American Airlines is considering.
Deals starting/expiring at the end of today or starting today (view the full deal calendar here):
- Discover Checking Account Cashback Match Bonus, $30 Per Month up to $210 Bonus Match
- Expedia Activities: 14% Off With Promo Code VALENTINE14
- BBVA $400 Checking Bonus + $50 Savings Bonus – Available Via Phone & In Branch
Deals starting/expiring at end of tomorrow:
- Marcus $100 Bonus for New & *Existing* Savings Customers with $10,000 Deposit (1.70% APY)
- Chase Checking $5 Autosave Bonus By Saving $30
- Hy-Vee: Spend $50 On Happy Giftcards & Get 20¢ Off Per Gallon
- Regal Cinemas: Free Screening Of Harriett (2/4 & 2/11)
- [TX] H-E-B: Get $10 Gift Card with $50 Vanilla Visa Purchase
- Kroger: 4x Fuel Points On Visa/MC Fixed Value & Dining/Entertainment Giftcards
Here are some of the most popular posts from past few days:
I guess the pissing contest over semantics is moot – just read this on view from the wing.
It won’t juice the economy as employees will only see about 2.2% as cash – with the lions share of the bonus going into retirement accounts.
Article: Southwest Airlines Employees Won’t See Most Of Profit Sharing In Their Paychecks”
…..
“E]ligible employees will soon receive 12.2% of their annual salary, which is the equivalent of roughly an additional six weeks of pay. Other employees will get the contribution added to their retirement accounts.
Well, according to the linked tweet’s screenshots, the 10% goes into a separate pretax account, and the remaining 2.2% cash portion is “withheld” (not “taxed”) at 22%, per IRS regulations.
Yes, it but still semantics on taxed/witheld the supplemental income rate changed to 22% with the 2017 tax reform – previously it ranged 25-40% depending on ones tax bracket – but it always sucked when bonuses, cashed out vacation or sick days was at a higher withholding rate and planned on a nice fat check- I also hate loaning Uncle money interest free- we’ve used 9 on our W-4s – then overpay taxes at the end of the year (to meet another MSR for SUB) payoff of the balance before the statement grace period then we get a little extra interest on the over payment from Uncle Sam.
I think its great that the airlines are FINALLY starting to generously share with employees a part if the pie.
But it’s a shame that it gets taxed at bonus rates rather than normal income – think it would be great if could just go pre-tax in to retirement account’s (but that wouldn’t juice the economy).
Taxed at bonus rates rather than normal income?
Bonuses are taxed at the same rate as the rest of their income. The withholding might be higher, but the tax is the same.
Depends on the employer they gave two choice Percentage method (25%) or The Aggregate Method .
Most use percentage method and it takes a huge chunk – at least all my bonuses in the past have been this way.
JoeHx
You have no idea what you are saying. Bonus money is taxed at same rates as normal income.
Tax may be withheld at a different/ higher rate because bonus is in addition to your salary so you will pay marginal tax on it.
No, it appears you are the one who has no idea what you are saying.
https://www.bankrate.com/taxes/how-bonuses-are-taxed/
I’m reading that and it’s exactly what @debit is saying. The WITHHOLDING (aggregate or percentage) is done on the bonus amount, but the amount TAXED (via truing up at the end of the year when you file) is at the same rates as normal income.
debit and JoeHx are correct. Your bonus check gets withheld at a higher rate because you are assumed to be in a higher tax bracket with the extra income. But in reality it doesn’t get treated any differently from your wages. Just take a look at your W2 at the end of the year and read through your 1040. There’s no distinction of salary vs. bonus whatsoever.
anyone that thinks that a bonus gets taxed at a different rate needs to take a basic course in how taxes work. As others have said, it is taxed the same as any other income. There is no difference. Income is income is income. And, I bet anyone that thinks this 100% having somebody else do their taxes for them.
The same people that complain that their refund went down. They can’t grasp the concept that they are just giving the government an interest-free loan.
You can put it into pre-tax retirement accounts, just like any other earnings. The same percentage of my salary that goes into my 401(k) is applied to my bonus. One could still put any amount they wish (subject to the same contribution limits) into their traditional IRA. The taxes withheld part won’t be returned until the end of the year (if applicable), but there’s not much you can do about that.