Operational needs
Virescit Vulnere Virtus
You’re right. I missed that.
FedEx to give employees bonuses, raises, 401k
- Thread starter Jkloc420
- Start date
SmithBarney
Well-Known Member
Exactly, 6months earlier, then you wait a 18months til the next raise, so you are exactly where you were to begin with... WTF this is nothing but a big FU to employees.
Route 66
Slapped Upside-da-Head Member
But are we surprised?
Oldfart
Well-Known Member
Just like I said before. You get a raise and people whine and cry.
Hey smith, why don't you ask payroll to delay your raise till Oct. Then you won't have to wait 18 months.
Cry me a river.
Please follow and comment on the actual April pay action on the new thread.
https://www.browncafe.com/community/threads/april-2018-pay-action.376483/
https://www.browncafe.com/community/threads/april-2018-pay-action.376483/
SmithBarney
Well-Known Member
That's gonna suck for them, since I think bonus's typically are taxed at a different rate than hourly income.
Or at the least a lump bonus payout, is gonna bump individual paychecks into a different tax bracket.
But new tax brackets have income up to $90k's taxed at 12%. So not so bad.
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Oldfart
Well-Known Member
Better let floridays explain the tax rules to you. He THINKS the weekly withholding is not a tax. I guess he thinks it is a loan to the government.
SmithBarney
Well-Known Member
Oh yeah I forgot we are defunding the govt now by not having to pay as much tax...
Fred's Myth
Nonhyphenated American
The IRS assumes each paycheck is typical for the pay period, and extrapolates it to an annual total, then withholds funds based on that assumed total. IT DOESN'T TAX BONUSES AT A DIFFERENT RATE. You don't pay taxes until after the year end, so technically your withholdings are not taxes, but a security deposited against your eventual obligation.
!Retired!
Well-Known Member
Am I mistaken we're getting 2 raises in 6 months?
Operational needs
Virescit Vulnere Virtus
Yes, you are mistaken. If you’re not topped out you get a step increase in April and your next is raise October 2019.
McFeely
Huge Member
Mostly correct...the IRS considers a bonus "supplemental wages" and withholds 25% for tax purposes at the time the bonus is given. The IRS isn't exactly thinking your bonus x 52 weeks is your new yearly pay per se, but it does withhold 25% on that part of that check.
At the end of the year, you are correct. Your tax bill due is based off your entire year of earnings from FedEx (I'm just keeping this simple with one job for the sake of clarification). So if you made $49,000 in hourly pay + $1,000 in a bonus, your tax bill would be based off of a $50k income. That tax bill due would be the same as if you had earned $50k in hourly pay alone.
The worst part of the 25% tax on supplemental wages is when you get laid off from a job and get a fat severance check. You lose your job, but YAY you have a severance check to get by...however it's been cut down by a huge amount and you most likely reeeeeeally need that money since you just lost your job. It happened to me.
Fred's Myth
Nonhyphenated American
The IRS gives two options for withholding on the bonus:
- Withhold taxes at a rate of 25 percent—regardless of your actual tax bracket.
- Determine how much it should withhold on all your compensation for the pay period as if it were all regular wages. In this option—which is obviously more complicated, and can result in more of your bonus being withheld for taxes—your employer then reduces that amount by what it should withhold on the regular pay, and withholds the remainder on the bonus.
McFeely
Huge Member
Interesting. I've never had the option in all of the bonuses I've received.
Regardless, I think we can all agree that the IRS withholds the ever living crap out of bonuses when they are on that check?
!Retired!
Well-Known Member
October 2017 ---> April 2018 = 6 months...no?
Plus, I'll be making more from April 2018 to October 2018, when I originally was supposed to get a raise. I'll make $1167.60 more this year based on only a 35 minimum week, $1334.40 based on a 40 hour week. Please explain how this is a bad thing? Obviously, you would prefer the company not give anything in April and you can wait until October for your raise.
Operational needs
Virescit Vulnere Virtus
Oops. You are correct. I was thinking forward, not backward.
FYI, I never said it was a bad thing. You’ve been reading too many of oldfart’s made up stories.
MAKAVELI
Well-Known Member
Its not a bad thing for those in progression but topped out people will actually lose money over time. The ones who most benefited are new hires that were hired prior to July of last year. 2 raises in less than a year!
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!Retired!
Well-Known Member
I originally quoted SmithBarney. I get lost on here when someone else quotes me. Oddly enough, SmithBarney is now MIA.
