when we getting bonus???/
#33
Supplemental Wage Rate Changes
The supplemental wage withholding rate, which applies to nonregular “supplemental” wages paid by an employer such as bonuses and commissions also are to change under the bill.
The supplemental wage withholding rate for supplemental wages less than or equal to $1 million, using the flat withholding method, would increase to 28 percent under the bill. The rate is an increase from the current supplemental wage withholding flat rate of 25 percent, in effect since 2007.
Supplemental wage payments in excess of $1 million during the 2018 taxable year would be subject to a reduced rate of 37 percent under the bill, compared to the current rate of 39.6 percent.
#34
Line Holder
Joined APC: Aug 2012
Posts: 48
The 28 percent rate is only the withholding rate. That is what your employer withholds from your bonus check, but at tax time it is taxed at your normal rate. In essence the government is getting an interest free loan, and then you get a bigger refund or pay less taxes when the time comes.
#35
Banned
Joined APC: Jun 2015
Posts: 482
The 28 percent rate is only the withholding rate. That is what your employer withholds from your bonus check, but at tax time it is taxed at your normal rate. In essence the government is getting an interest free loan, and then you get a bigger refund or pay less taxes when the time comes.
#36
From Bloomberg on Dec 18, not sure if it made it into law though.
Supplemental Wage Rate Changes
The supplemental wage withholding rate, which applies to nonregular “supplemental” wages paid by an employer such as bonuses and commissions also are to change under the bill.
The supplemental wage withholding rate for supplemental wages less than or equal to $1 million, using the flat withholding method, would increase to 28 percent under the bill. The rate is an increase from the current supplemental wage withholding flat rate of 25 percent, in effect since 2007.
Supplemental wage payments in excess of $1 million during the 2018 taxable year would be subject to a reduced rate of 37 percent under the bill, compared to the current rate of 39.6 percent.
Supplemental Wage Rate Changes
The supplemental wage withholding rate, which applies to nonregular “supplemental” wages paid by an employer such as bonuses and commissions also are to change under the bill.
The supplemental wage withholding rate for supplemental wages less than or equal to $1 million, using the flat withholding method, would increase to 28 percent under the bill. The rate is an increase from the current supplemental wage withholding flat rate of 25 percent, in effect since 2007.
Supplemental wage payments in excess of $1 million during the 2018 taxable year would be subject to a reduced rate of 37 percent under the bill, compared to the current rate of 39.6 percent.
Thanks!
Filler
Thread
Thread Starter
Forum
Replies
Last Post