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FedEx Discussions
FedEx to give employees bonuses, raises, 401k
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<blockquote data-quote="Fred&#039;s Myth" data-source="post: 3363931" data-attributes="member: 55587"><p>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.</p></blockquote><p></p>
[QUOTE="Fred's Myth, post: 3363931, member: 55587"] 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. [/QUOTE]
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