I just got my performance review and it went pretty well...I was expecting it to be much worse (another thread, another time), but it wasn't that bad...Apparently I'm an a-hole... Although I got a merit increase, I won't get it the upcoming paycheck's this coming year...They're going to give it to me in a lump sum payment... At first I was like, sweet, up-front $$$ is the best, but unfortunately, it will be deemed a bonus and thus, get taxed at a higher rate, so my actual out of pocket will be lower... Has anyone gotten their review and want to share...
That's not necessarily true. Your employer will probably compute the withholding differently, so you may not immediately “see” as much of that money, but for actual tax purposes, your bonus will be lumped in with your normal wages and taxed at your marginal tax rate.
Right...bonuses are not taxed differently, just withheld differently. Does the merit increase go to next year as well? If not, then you really did get screwed a little.
Agreed, but your right, the compounding probably won't come into play, which is what I've asked, and I'm awaiting an answer...
Aren't you in school? What the hell kind of taxes do you have? I remember when I was in school, I finished my taxes in about 5 minutes. Now it takes me several hours over the course of several weeks. But much of that is due to the fact I'm lazy. I've gotten lump sum bonuses, too. From what I recall, they were taxed as regular wages.
