Company Benefits
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@tim_g If you are consistently getting a large return, you should increase the allowances you claim on a w-4. Keep your money to invest or save and don't give free loans to the government.
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@john-nicholson said in Company Benefits:
@tim_g said in Company Benefits:
@scottalanmiller said in Company Benefits:
Bonuses aren't even a real thing to the IRS, it's literally just part of your pay. At least that's how it has always been where I have gotten bonuses. It's just a paycheck with a larger amount in it that normal, the IRS doesn't have a "this is a bonus" checkbox to even know that it is a bonus to be taxed differently. At the end of the year, your bonus is just part of your pay, it can't be taxed differently because there is nowhere for it to show up.
Yeah I get that, it's all just "income", and you get taxed on it all just the same at the end of the year. And if they take too much, you get more back.
I'm talking about what you get in your pocket then and there.
While I'm all for not giving the IRS an interest-free loan! It helps offset dealing with estimated tax payments (horay, extra quarterly payments!)
Even if you owe them money at the end of the year, at least you had some interest while you had it.
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@wrx7m said in Company Benefits:
@john-nicholson said in Company Benefits:
@scottalanmiller said in Company Benefits:
@tim_g said in Company Benefits:
@jaredbusch said in Company Benefits:
@tim_g said in Company Benefits:
@scottalanmiller said in Company Benefits:
Bonuses aren't even a real thing to the IRS, it's literally just part of your pay. At least that's how it has always been where I have gotten bonuses. It's just a paycheck with a larger amount in it that normal, the IRS doesn't have a "this is a bonus" checkbox to even know that it is a bonus to be taxed differently. At the end of the year, your bonus is just part of your pay, it can't be taxed differently because there is nowhere for it to show up.
Yeah I get that, it's all just "income", and you get taxed on it all just the same at the end of the year. And if they take too much, you get more back.
I'm talking about what you get in your pocket then and there.
Not relevant is the point. You still owe taxes based on the total when it is all said and done.
It is relevant when I get paid, because I make sure my deductions are set so that I don't have to pay anything and so I get a little back. I don't need them "shorting" me on a bonus then, to give it back later. I'm already putting money in savings, 401k, etc... I don't need an "extra" holding when I get a bonus.
Only so relevant as you can modify that individual paycheck to not do that. That's at your discretion. The taxes don't change, only the deductions do and those are at your discretion. If you chose to do it differently, you'd see more money coming to you rather than less. But it would all be the same once it switches from deductions to taxes.
Technically you only control the federal taxes withholding. There is variability on the up for Medicare because my joint filing is too high (If you don't drop your tax liability at a point you run the risk of paying a penalty extra rate on my marginal for Medicare) and on the down for social security (I've stopped paying it for the year as I've hit the $7,886.40 maximum the government will withhold for the year). Kinda nice getting a big spike on your paycheck part way through the year.
If you are paying more up front to the government, you are ripping yourself off- Giving them a free loan. No thanks.
This is true if you don't have income outside of salary. Due to stock compensation, dividends, and other fun things I have to withhold extra/pay quarterly estimated taxes.
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@tim_g said in Company Benefits:
@john-nicholson said in Company Benefits:
@tim_g said in Company Benefits:
@jaredbusch said in Company Benefits:
The owner pays out bonuses to all the employees twice yearly, but it is simply profit sharing.
Basically he keeps cash banked to handle XX months of payroll. Then as long as we have that he pays out the overage as a bonus to us based on full time / part time and how long we been here.
Yeah, and bonuses get taxed like crazy. If you get a 5k bonus, you get less than half of it in your pocket.
I'm not sure if your serious but...
...then I would tell you your wrong, way, way wrong!
about 3.5x more CA and FITW taxes taken out, than on a regular income check that's even more than the bonus.
Calculate the percentages already. I bet that "bonus" check is a lot more than you normally get in a single pay period as well. The only way the percentage is larger is if you hit a higher tax bracket (which is really easy to do.)
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@travisdh1 Yeah, I have had some bonuses go that way
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@travisdh1 said in Company Benefits:
@tim_g said in Company Benefits:
@john-nicholson said in Company Benefits:
@tim_g said in Company Benefits:
@jaredbusch said in Company Benefits:
The owner pays out bonuses to all the employees twice yearly, but it is simply profit sharing.
Basically he keeps cash banked to handle XX months of payroll. Then as long as we have that he pays out the overage as a bonus to us based on full time / part time and how long we been here.
Yeah, and bonuses get taxed like crazy. If you get a 5k bonus, you get less than half of it in your pocket.
I'm not sure if your serious but...
...then I would tell you your wrong, way, way wrong!
about 3.5x more CA and FITW taxes taken out, than on a regular income check that's even more than the bonus.
Calculate the percentages already. I bet that "bonus" check is a lot more than you normally get in a single pay period as well. The only way the percentage is larger is if you hit a higher tax bracket (which is really easy to do.)
It's common to tax it at your marginal rate. Normal income averages all of the brackets over the year for taxes. Because bonuses are not part of this blending they get hit with marginal. Now nothing stops you from adjusting this mix, but it's really HR doing most people a favor.
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^^^^ What he said ^^^^^
@JaredBusch is just making sure the IRS doesn't hold on to funds at 0% interest that are rightfully his
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@emad-r said in Company Benefits:
Yearly coat/jacket allowance
???What does that mean
Even though I live and work in Texas where it's hot for a good majority of the year, I work in a meat processing facility. In order to process the meat, the facility has to be cold, like below 40 degrees F (~4.5 C). Therefore, we need jackets to work in the facility and jackets wear out. Which means we get an allowance towards new jackets every year.
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@wrx7m said in Company Benefits:
@john-nicholson said in Company Benefits:
@tim_g said in Company Benefits:
@scottalanmiller said in Company Benefits:
Bonuses aren't even a real thing to the IRS, it's literally just part of your pay. At least that's how it has always been where I have gotten bonuses. It's just a paycheck with a larger amount in it that normal, the IRS doesn't have a "this is a bonus" checkbox to even know that it is a bonus to be taxed differently. At the end of the year, your bonus is just part of your pay, it can't be taxed differently because there is nowhere for it to show up.
Yeah I get that, it's all just "income", and you get taxed on it all just the same at the end of the year. And if they take too much, you get more back.
I'm talking about what you get in your pocket then and there.
While I'm all for not giving the IRS an interest-free loan! It helps offset dealing with estimated tax payments (horay, extra quarterly payments!)
Even if you owe them money at the end of the year, at least you had some interest while you had it.
Except that I'll owe them penalties.
The problem is if you underpay, then you owe them interest (it's up to 4%, so not a huge deal honestly as you can beat that with a decent portfolio but it's something to think about).
https://proconnect.intuit.com/proseries/articles/federal-irs-underpayment-interest-rates/
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@john-nicholson said in Company Benefits:
@wrx7m said in Company Benefits:
@john-nicholson said in Company Benefits:
@tim_g said in Company Benefits:
@scottalanmiller said in Company Benefits:
Bonuses aren't even a real thing to the IRS, it's literally just part of your pay. At least that's how it has always been where I have gotten bonuses. It's just a paycheck with a larger amount in it that normal, the IRS doesn't have a "this is a bonus" checkbox to even know that it is a bonus to be taxed differently. At the end of the year, your bonus is just part of your pay, it can't be taxed differently because there is nowhere for it to show up.
Yeah I get that, it's all just "income", and you get taxed on it all just the same at the end of the year. And if they take too much, you get more back.
I'm talking about what you get in your pocket then and there.
While I'm all for not giving the IRS an interest-free loan! It helps offset dealing with estimated tax payments (horay, extra quarterly payments!)
Even if you owe them money at the end of the year, at least you had some interest while you had it.
Except that I'll owe them penalties.
The problem is if you underpay, then you owe them interest (it's up to 4%, so not a huge deal honestly as you can beat that with a decent portfolio but it's something to think about).
https://proconnect.intuit.com/proseries/articles/federal-irs-underpayment-interest-rates/
Did you really just quote an Intuit article? That alone should tell you that you've completely misunderstood something. They do not charge interest till you are actively late on a payment.
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@travisdh1 said in Company Benefits:
@john-nicholson said in Company Benefits:
@wrx7m said in Company Benefits:
@john-nicholson said in Company Benefits:
@tim_g said in Company Benefits:
@scottalanmiller said in Company Benefits:
Bonuses aren't even a real thing to the IRS, it's literally just part of your pay. At least that's how it has always been where I have gotten bonuses. It's just a paycheck with a larger amount in it that normal, the IRS doesn't have a "this is a bonus" checkbox to even know that it is a bonus to be taxed differently. At the end of the year, your bonus is just part of your pay, it can't be taxed differently because there is nowhere for it to show up.
Yeah I get that, it's all just "income", and you get taxed on it all just the same at the end of the year. And if they take too much, you get more back.
I'm talking about what you get in your pocket then and there.
While I'm all for not giving the IRS an interest-free loan! It helps offset dealing with estimated tax payments (horay, extra quarterly payments!)
Even if you owe them money at the end of the year, at least you had some interest while you had it.
Except that I'll owe them penalties.
The problem is if you underpay, then you owe them interest (it's up to 4%, so not a huge deal honestly as you can beat that with a decent portfolio but it's something to think about).
https://proconnect.intuit.com/proseries/articles/federal-irs-underpayment-interest-rates/
Did you really just quote an Intuit article? That alone should tell you that you've completely misunderstood something. They do not charge interest till you are actively late on a payment.
Seriously? Are you just being stupid for no reason? The URL matters not because tax law doesn't change no matter what site you read about it on.
Besides do you know another clean link with a straightforward table showing the information?
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@jaredbusch said in Company Benefits:
@travisdh1 said in Company Benefits:
@john-nicholson said in Company Benefits:
@wrx7m said in Company Benefits:
@john-nicholson said in Company Benefits:
@tim_g said in Company Benefits:
@scottalanmiller said in Company Benefits:
Bonuses aren't even a real thing to the IRS, it's literally just part of your pay. At least that's how it has always been where I have gotten bonuses. It's just a paycheck with a larger amount in it that normal, the IRS doesn't have a "this is a bonus" checkbox to even know that it is a bonus to be taxed differently. At the end of the year, your bonus is just part of your pay, it can't be taxed differently because there is nowhere for it to show up.
Yeah I get that, it's all just "income", and you get taxed on it all just the same at the end of the year. And if they take too much, you get more back.
I'm talking about what you get in your pocket then and there.
While I'm all for not giving the IRS an interest-free loan! It helps offset dealing with estimated tax payments (horay, extra quarterly payments!)
Even if you owe them money at the end of the year, at least you had some interest while you had it.
Except that I'll owe them penalties.
The problem is if you underpay, then you owe them interest (it's up to 4%, so not a huge deal honestly as you can beat that with a decent portfolio but it's something to think about).
https://proconnect.intuit.com/proseries/articles/federal-irs-underpayment-interest-rates/
Did you really just quote an Intuit article? That alone should tell you that you've completely misunderstood something. They do not charge interest till you are actively late on a payment.
Seriously? Are you just being stupid for no reason? The URL matters not because tax law doesn't change no matter what site you read about it on.
Besides do you know another clean link with a straightforward table showing the information?
This is how little I trust anything coming from Intuit, yes, seriously.
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@travisdh1 said in Company Benefits:
@jaredbusch said in Company Benefits:
@travisdh1 said in Company Benefits:
@john-nicholson said in Company Benefits:
@wrx7m said in Company Benefits:
@john-nicholson said in Company Benefits:
@tim_g said in Company Benefits:
@scottalanmiller said in Company Benefits:
Bonuses aren't even a real thing to the IRS, it's literally just part of your pay. At least that's how it has always been where I have gotten bonuses. It's just a paycheck with a larger amount in it that normal, the IRS doesn't have a "this is a bonus" checkbox to even know that it is a bonus to be taxed differently. At the end of the year, your bonus is just part of your pay, it can't be taxed differently because there is nowhere for it to show up.
Yeah I get that, it's all just "income", and you get taxed on it all just the same at the end of the year. And if they take too much, you get more back.
I'm talking about what you get in your pocket then and there.
While I'm all for not giving the IRS an interest-free loan! It helps offset dealing with estimated tax payments (horay, extra quarterly payments!)
Even if you owe them money at the end of the year, at least you had some interest while you had it.
Except that I'll owe them penalties.
The problem is if you underpay, then you owe them interest (it's up to 4%, so not a huge deal honestly as you can beat that with a decent portfolio but it's something to think about).
https://proconnect.intuit.com/proseries/articles/federal-irs-underpayment-interest-rates/
Did you really just quote an Intuit article? That alone should tell you that you've completely misunderstood something. They do not charge interest till you are actively late on a payment.
Seriously? Are you just being stupid for no reason? The URL matters not because tax law doesn't change no matter what site you read about it on.
Besides do you know another clean link with a straightforward table showing the information?
This is how little I trust anything coming from Intuit, yes, seriously.
Pretty sure this is just Intuit regurgitating information from the IRS. So, if anything, the reference should be of the IRS.
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@travisdh1 said in Company Benefits:
@jaredbusch said in Company Benefits:
@travisdh1 said in Company Benefits:
@john-nicholson said in Company Benefits:
@wrx7m said in Company Benefits:
@john-nicholson said in Company Benefits:
@tim_g said in Company Benefits:
@scottalanmiller said in Company Benefits:
Bonuses aren't even a real thing to the IRS, it's literally just part of your pay. At least that's how it has always been where I have gotten bonuses. It's just a paycheck with a larger amount in it that normal, the IRS doesn't have a "this is a bonus" checkbox to even know that it is a bonus to be taxed differently. At the end of the year, your bonus is just part of your pay, it can't be taxed differently because there is nowhere for it to show up.
Yeah I get that, it's all just "income", and you get taxed on it all just the same at the end of the year. And if they take too much, you get more back.
I'm talking about what you get in your pocket then and there.
While I'm all for not giving the IRS an interest-free loan! It helps offset dealing with estimated tax payments (horay, extra quarterly payments!)
Even if you owe them money at the end of the year, at least you had some interest while you had it.
Except that I'll owe them penalties.
The problem is if you underpay, then you owe them interest (it's up to 4%, so not a huge deal honestly as you can beat that with a decent portfolio but it's something to think about).
https://proconnect.intuit.com/proseries/articles/federal-irs-underpayment-interest-rates/
Did you really just quote an Intuit article? That alone should tell you that you've completely misunderstood something. They do not charge interest till you are actively late on a payment.
Seriously? Are you just being stupid for no reason? The URL matters not because tax law doesn't change no matter what site you read about it on.
Besides do you know another clean link with a straightforward table showing the information?
This is how little I trust anything coming from Intuit, yes, seriously.
I like and use Mint.
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@tim_g said in Company Benefits:
@travisdh1 said in Company Benefits:
@jaredbusch said in Company Benefits:
@travisdh1 said in Company Benefits:
@john-nicholson said in Company Benefits:
@wrx7m said in Company Benefits:
@john-nicholson said in Company Benefits:
@tim_g said in Company Benefits:
@scottalanmiller said in Company Benefits:
Bonuses aren't even a real thing to the IRS, it's literally just part of your pay. At least that's how it has always been where I have gotten bonuses. It's just a paycheck with a larger amount in it that normal, the IRS doesn't have a "this is a bonus" checkbox to even know that it is a bonus to be taxed differently. At the end of the year, your bonus is just part of your pay, it can't be taxed differently because there is nowhere for it to show up.
Yeah I get that, it's all just "income", and you get taxed on it all just the same at the end of the year. And if they take too much, you get more back.
I'm talking about what you get in your pocket then and there.
While I'm all for not giving the IRS an interest-free loan! It helps offset dealing with estimated tax payments (horay, extra quarterly payments!)
Even if you owe them money at the end of the year, at least you had some interest while you had it.
Except that I'll owe them penalties.
The problem is if you underpay, then you owe them interest (it's up to 4%, so not a huge deal honestly as you can beat that with a decent portfolio but it's something to think about).
https://proconnect.intuit.com/proseries/articles/federal-irs-underpayment-interest-rates/
Did you really just quote an Intuit article? That alone should tell you that you've completely misunderstood something. They do not charge interest till you are actively late on a payment.
Seriously? Are you just being stupid for no reason? The URL matters not because tax law doesn't change no matter what site you read about it on.
Besides do you know another clean link with a straightforward table showing the information?
This is how little I trust anything coming from Intuit, yes, seriously.
I like and use Mint.
Been using it for over 10 years now. I don't know what I would do without it.
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@nerdydad said in Company Benefits:
@travisdh1 said in Company Benefits:
@jaredbusch said in Company Benefits:
@travisdh1 said in Company Benefits:
@john-nicholson said in Company Benefits:
@wrx7m said in Company Benefits:
@john-nicholson said in Company Benefits:
@tim_g said in Company Benefits:
@scottalanmiller said in Company Benefits:
Bonuses aren't even a real thing to the IRS, it's literally just part of your pay. At least that's how it has always been where I have gotten bonuses. It's just a paycheck with a larger amount in it that normal, the IRS doesn't have a "this is a bonus" checkbox to even know that it is a bonus to be taxed differently. At the end of the year, your bonus is just part of your pay, it can't be taxed differently because there is nowhere for it to show up.
Yeah I get that, it's all just "income", and you get taxed on it all just the same at the end of the year. And if they take too much, you get more back.
I'm talking about what you get in your pocket then and there.
While I'm all for not giving the IRS an interest-free loan! It helps offset dealing with estimated tax payments (horay, extra quarterly payments!)
Even if you owe them money at the end of the year, at least you had some interest while you had it.
Except that I'll owe them penalties.
The problem is if you underpay, then you owe them interest (it's up to 4%, so not a huge deal honestly as you can beat that with a decent portfolio but it's something to think about).
https://proconnect.intuit.com/proseries/articles/federal-irs-underpayment-interest-rates/
Did you really just quote an Intuit article? That alone should tell you that you've completely misunderstood something. They do not charge interest till you are actively late on a payment.
Seriously? Are you just being stupid for no reason? The URL matters not because tax law doesn't change no matter what site you read about it on.
Besides do you know another clean link with a straightforward table showing the information?
This is how little I trust anything coming from Intuit, yes, seriously.
Pretty sure this is just Intuit regurgitating information from the IRS. So, if anything, the reference should be of the IRS.
https://www.irs.gov/pub/irs-drop/rr-16-28.pdf
https://www.irs.gov/uac/interest-rates-remain-the-same-for-the-first-quarter-of-2017Note, you owe taxes on a quarterly basis was my point. My point is that it's stupid to think you can just under withhold and make it up later and not have a cost basis. You effectively owe the taxes as you earn them. Even more annoyingly, if you MIGHT make a lot of money at the end of the year they want you to cost average and make the payments quarterly (Which is what makes things annoying for me in that I have to factor money I MIGHT make in Q4 on a sale of an asset that might double in price, or be cut in half).
Mint is good for basic budget/cash flow Tracking. personalcapital.com is a bit better for long term wealth tracking as it can handle 2FA accounts with eTrade etc that Mint can't.
As far as hating on Inuit. They are fine for basic 1099-EZ type stuff. If your stuff is more complicated pay a professional. $500 in tax prep saved me 8K in taxes vs. what TurboTax reported.
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@john-nicholson said in Company Benefits:
Note, you owe taxes on a quarterly basis was my point.
That's not the norm tho. You only owe quarterly if you are paid as an independent of some sort (1099) or a business. Normal employee taxes are only figured/paid once a year.
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@travisdh1 said in Company Benefits:
@john-nicholson said in Company Benefits:
Note, you owe taxes on a quarterly basis was my point.
That's not the norm tho. You only owe quarterly if you are paid as an independent of some sort (1099) or a business. Normal employee taxes are only figured/paid once a year.
Actually they are. My dad is taxed quarterly and he is retired. Everyone owes as money comes in. Quarterly reporting is due under numerous non-business circumstances.
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@scottalanmiller said in Company Benefits:
@travisdh1 said in Company Benefits:
@john-nicholson said in Company Benefits:
Note, you owe taxes on a quarterly basis was my point.
That's not the norm tho. You only owe quarterly if you are paid as an independent of some sort (1099) or a business. Normal employee taxes are only figured/paid once a year.
Actually they are. My dad is taxed quarterly and he is retired. Everyone owes as money comes in. Quarterly reporting is due under numerous non-business circumstances.
Exactly. If you're like John and you have these crazy huge bonuses as a normal employee you still have the quarterly requirement, etc.
For example you can't just claim exempt status at work then send in a check for 20k + the following year on April 15 and think you won't be penalized, because you will be.
