Company Benefits
-
@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.
-
-
^^^^ What he said ^^^^^
@JaredBusch is just making sure the IRS doesn't hold on to funds at 0% interest that are rightfully his
-
@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.
-
@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/
-
@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.
-
@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?
-
@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.
-
@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.
-
@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.
-
@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.
-
@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.
-
@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.
-
@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.
-
@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.
-
Which I always avoided by letting the gov't owe me money. As long as you always do that, they never make you do all that quarterly crap.
-
@scottalanmiller said in Company Benefits:
Which I always avoided by letting the gov't owe me money. As long as you always do that, they never make you do all that quarterly crap.
There is a threshold where you don't get fined, but I have no idea what it is.
I've owed like $4k before with no penalty.
-
@dashrender said in Company Benefits:
@scottalanmiller said in Company Benefits:
Which I always avoided by letting the gov't owe me money. As long as you always do that, they never make you do all that quarterly crap.
There is a threshold where you don't get fined, but I have no idea what it is.
I've owed like $4k before with no penalty.
Oh yeah, it's not a thing that affects "normal" people. Everyone owes or is owed a little, they don't care. This is for big numbers.
-
@john-nicholson said in Company Benefits:
personalcapital.com is a bit better for long term wealth tracking as it can handle 2FA accounts with eTrade etc that Mint can't.
That looks good. I took a quick peak at their website... and it looks free. I have to get going and can't look into it at the moment, but is it free to use and offer at minimum what Mint does, plus what you mentioned?
-
@dashrender said in Company Benefits:
@scottalanmiller said in Company Benefits:
Which I always avoided by letting the gov't owe me money. As long as you always do that, they never make you do all that quarterly crap.
There is a threshold where you don't get fined, but I have no idea what it is.
I've owed like $4k before with no penalty.
One off your fine, but since I owed more than $1000 last year I'm expected to make quarterly this year. The rule to handle the weird outliers (oil royalty, winning a lawsuit etc) is make sure you pay them 100% of last years return in quarterly installments (assuming last year wasn't quarterly).
@scottalanmiller said in Company Benefits:
Which I always avoided by letting the gov't owe me money. As long as you always do that, they never make you do all that quarterly crap.
True, but it has to be withheld evenly. In theory paying my CPA to manage the quarterly payments means I can hold onto that cash longer and make more money with it while still fufilling my obligations. Your situation is likely easier as you have deductions (House, Kids), as you can just set your deductions to 0 and still not owe money. I have to set my withholding to 0 THEN add an extra percentage or cash amount to withhold (or write a quarterly check).
