Oil and Gas company gives ALL its employees $100,000 bonuses.....EVERYBODY

[Sucka T.]

i didnt back track anything. i said. its still you paying more taxes. in another tax bracket. was i wrong? NOPE.
i never gave specifics on how the brackets work or dont work. what you did was you thought you were being smart by telling us what you know as the specifics to what people think when they say "oh no that will put me in another bracket."

yet that statement is true. its just true for some of your money. not all.

Guy said "bonus checks are taxed at 50%"

I said "bonus checks are taxed as regular wages"

Then you replied with "actually..." then spouted off some bullshyt about gift tax (lol). Keep trying.

 

[rapbeats]

Guy said "bonus checks are taxed at 50%"

I said "bonus checks are taxed as regular wages"

Then you replied with "actually..." then spouted off some bullshyt about gift tax (lol). Keep trying.

i said bonus checks are taxed regular. just like you said. dummy. you know its bad when someone agrees with you and you are so busy trying to be smart you end up looking dumb. i agreed with you.
What he said was correct. its taxed like normal. it just makes you think it isnt since you have never seen that much money in one check before. you're not use to that kind of cash coming thru on one check(most people are on hourly/salary. unless you're a sales person where you get commission and you get large checks sometimes and small ones other times. you dont know what a really Nice bonus check looks like on the tax side of things. this is why people freak out about the taxes they take out on your bonus.

Then i said. UNLESS you're getting hit with a "GIFT" tax. there i was incorrect and only there.

but the truth is, there is a very slight chance someone could give you a gift and not pay the taxes and therefore YOU the recipient would owe said taxes.


So now. to answer the original question.
here's the truth

It comes down to what's called "supplemental income." Although all of your earned dollars are equal at tax time, when bonuses are issued, they're considered supplemental income by the IRS and held to a higher withholding rate. It's probably that withholding you're noticing on a shrunken bonus

so now since you want to come in here popping off. lets go ahead and lay it all out with 100% accuracy.


Bonus Time: How Bonuses Are Taxed and Treated by the IRS

Bonus Taxes

If you read the tax code, you will notice that the Internal Revenue Service goes to great lengths to categorize different types of income and treat them differently. Bonuses are another example of this. In the eyes of the IRS, bonuses are typically categorized as “supplemental wages.” As aUniversity of Minnesota summary explains:

“The IRS defines supplemental wages as compensation paid in addition to the employee’s regular wages that includes, but is not limited to, severance or dismissal pay, vacation pay, back pay, bonuses, moving expenses, overtime, taxable fringe benefits, and commissions.”

As such, bonuses (like other supplemental wages) are treated differently than ordinary wage or salary income. There are two ways of taxing bonuses: the percentage method and the aggregate method. Which method gets applied to your bonus? Let’s find out.

The Percentage Method


The IRS specifies a flat “supplemental rate” of 25%, meaning that any supplemental wages (including bonuses) should be taxed in that amount. If you receive a $5,000 bonus, under this rule, $1,250 (25% of $5,000) goes straight to the IRS. Using this approach, the amount of your bonus – whatever it is – is “singled out” from the rest of your income and taxed directly. Employers frequently choose the percentage method because it’s easy and mindless to tax the entire bonus at a uniform rate.

In most cases, this is ideal from your standpoint as the bonus receiver and taxpayer, too. The aggregate method (described below), in addition to being more time-consuming and laborious for employers, can take a bigger tax bite out of your bonus payments.

The Aggregate Method


Unlike the much simpler percentage method, the aggregate method is when your employer adds the amount of your bonus (say, $5,000) to your most recent regular paycheck. Then, they determine the normal withholding amount based on IRS withholding tables for the sum of both amounts, subtract what was already withheld from your last paycheck, and withhold the rest from the bonus amount.

The problem with this approach is that instead of being taxed at a flat 25% – and having that 25% rate apply only to the bonus amount – you get taxed at what is almost certainly a higher rate on the combined amount of your normal pay and the bonus. The result: a higher overall tax obligation for the same amount of income.

Here is a free bonus calculator based on the aggregate method. Use it to determine your bonus-related tax obligation should your employer choose this approach.

THE END

 

[Sucka T.]

THE END

LOL.

Ask anyone who knows anything about taxes and saw your original posts, they would agree with me. You made up some bullshyt, and now you are trying to play it off like you knew the whole time. It's ok that you didn't know. Just admit to it like a man and stop being a bytch about it. I have this same conversation all the time with people who don't understand tax. They say the same shyt you said in your first post.

Good try though.

 

[the artist known az]

I bet giving out all them bonuses is cheaper than what they would've paid in taxes

 

[Sucka T.]

I bet giving out all them bonuses is cheaper than what they would've paid in taxes

 

[the artist known az]

You know when companies give out bonuses that's a tax write off right

 

[Sucka T.]

You know when companies give out bonuses that's a tax write off right

You think paying $100k to an employee will save them more than $100k in tax?

 

[the artist known az]

You think paying $100k to an employee will save them more than $100k in tax?

Not individually idiot

 

[Sucka T.]

Not individually idiot

You think giving 1300 employees $100k each will save them more than $130 million in tax?

 

[BaggerofTea]

Damn imagine being a janitor for that bytch and receiving a 6 digit check

No contractors

 

[BaggerofTea]

How is this possible when there is a glut in the global oil market and oil prices are falling?

I have a friend who left the oil and gas sector to get into IT even (granted it was upstream oil and gas)

Subsidies

 

[the artist known az]

You think giving 1300 employees $100k each will save them more than $130 million in tax?

Are you stupid? That 130 million they gave to the employees would've gone to taxes. Do you know what a write off is?

 

[Sucka T.]

Are you stupid? That 130 million they gave to the employees would've gone to taxes. Do you know what a write off is?

Yes, I do know what a write off is. It seems you don't though.



Surely you aren't serious.

 

[the artist known az]

Yes, I do know what a write off is. It seems you don't though.



Surely you aren't serious.

Sure you do Skippy

 

[Sucka T.]

Sure you do Skippy

Why don't you explain it to me? Explain how a company could save more than $130 million in taxes by paying out $130 million dollars in bonuses to employees. Use numbers. I'll wait.

This should be good.