LIFamilies.com - Long Island, NY


RSS
Articles Business Directory Blog Real Estate Community Forum Shop My Family Contests

Log In Chat Index Search Rules Lingo Create Account

Quick navigation:   

Does anyone work in payroll or understand how taxes with payroll works?

Posted By Message

FirstMate
My lil cowboy

Member since 10/10

6605 total posts

Name:

Does anyone work in payroll or understand how taxes with payroll works?

This is just something I am not savvy in whatsoever.

I was supposed to get a bonus at work. At my old job, I would get a separate "bonus" check. At this job, my boss just rolled my bonus into my most recent paycheck.

Is one way better for me over the other, financially speaking? I guess in terms of taxes? I wasn't sure if I got less of a bonus because he put it in through normal payroll versus just cutting me a "bonus" check.

Posted 2/17/20 9:28 PM
 
Long Island Weddings
Long Island's Largest Bridal Resource

queensgal
Smile

Member since 4/09

2946 total posts

Name:

Re: Does anyone work in payroll or understand how taxes with payroll works?

At the end of the year it all ends up at box 1 wages and income.

Usually the bonus ends up being taxed at a higher amount because it’s a larger sum, kind of putting you at a higher rate but it all evens out at the end.

If you pay too much tax due to this, you get it back when you file your 2020 taxes. If you still end up paying too little, then you will owe.

So it doesn’t really matter.

Posted 2/18/20 12:37 PM
 

thewinterone
You make me happy

Member since 5/05

2393 total posts

Name:
cause you are gray.

Re: Does anyone work in payroll or understand how taxes with payroll works?

When we put a bonus through payroll, we issue a separate check so less taxes are applied.
It may be all the same in the end but in the moment it stinks when your bonus is taken down so much from taxes.

Posted 2/18/20 8:22 AM
 

LSP2005
Bunny kisses are so cute!

Member since 5/05

18615 total posts

Name:
L

Re: Does anyone work in payroll or understand how taxes with payroll works?

Some employees make different 401k allocations because their one bonus check could fully fund their 401k, and if the employer does not true up their match at the end of the calendar year, they will loose out on match money. While you will have more taxes taken from that one check, it evens out at the end of the year and you will get any extra money back in your refund/return.

Posted 2/18/20 9:33 AM
 

FirstMate
My lil cowboy

Member since 10/10

6605 total posts

Name:

Re: Does anyone work in payroll or understand how taxes with payroll works?

Cool, thank you! I wasn’t sure if it made any difference at all. I’m a pretty smart person but once the word “tax” starts getting thrown around, it’s like speaking Greek to me. Lol Thanks for all of your help.

Posted 2/18/20 12:09 PM
 
 

Potentially Related Topics:

Topic Posted By Started Replies Forum
Anyone work in A/P, A/R, or Payroll? hope42009 4/2/10 3 Career
payroll question re: taxes headoverheels 3/4/09 6 Families Helping Families ™
anyone work in payroll and can tell me... 04bride 10/11/05 1 Families Helping Families ™
Help me understand property/real estate Taxes! newlywedT 3/9/12 8 Home
I don't understand how spellcheck works!! PennyCat 11/6/11 6 Families Helping Families ™
 
Quick navigation:   
Currently 414 users on the LIFamilies.com Chat
New Businesses
Carleton Hall of East Islip
J&A Building Services
LaraMae Health Coaching
Sonic Wellness
Julbaby Photography LLC
Ideal Uniforms
Teresa Geraghty Photography
Camelot Dream Homes
Long Island Wedding Boutique
MB Febus- Rodan & Fields
Camp Harbor
Market America-Shop.com
ACM Basement Waterproofing
Travel Tom
Yoga Womb/ SECS talk

      Follow LIWeddings on Facebook

      Follow LIFamilies on Twitter
Long Island Bridal Shows