I just got a $500.00 bonus for referring people to the company I'm working for. I knew the check was coming and figured it would be around $400.00, boy was I wrong! LOL I should have remembered that when you get a bonus so does the government. THAT is something I would love to see Trump fix.
Out of the $500.00 the federal government took $165.00.
KC
Some companies will factor the tax implications into your bonus. For example, if the honchos want to give you a grand, they can make it approximately $1400 with the taxes then withheld and one would receive a check or direct deposit for about a grand. Smart companies, that is.
For my sideline gigs, receive a 1099 at year end. No taxes are taken out, but I intentionally sock away about 1/3 of it just for taxes. On the tax return, it is bundled along the regular job where taxes are clearly withheld. It is a pain, but proper preparation for the tax liability has gotta be done.
Consider it a good problem to have, so at least you did get some "crumbs".
