the_lamou t1_j9e6d0v wrote on February 21, 2023 at 7:01 AM

Reply to comment by Neoliberalism2024 in PSA: New York State tax brackets are not what they seem by PostPostMinimalist

That's how bonuses work literally everywhere — the withholding is ALWAYS significantly higher than the rate you end up paying.

AmericanCreamer t1_j9emzdl wrote on February 21, 2023 at 10:48 AM

Not what he’s saying though. Normally, well for federal taxes, bonus is withheld at the top marginal rate, but NYS withholds rate that’s higher than what’s even possible

HowDoWeAccountForMe2 t1_j9eujt6 wrote on February 21, 2023 at 12:22 PM

That's not true either Fed bonuses are taxed at 22% which is the 3rd of 7 tax brackets. Right in the median household income.

This would be like the fed government holding bonuses at 37% and then a extra few percent as an added FU.

kiklion t1_j9ewz10 wrote on February 21, 2023 at 12:46 PM

> That's not true either Fed bonuses are taxed at 22% which is the 3rd of 7 tax brackets.

I guess for you poors... /s

> For payments exceeding $1 million, the rate is 37 percent.

> https://www.irs.gov/newsroom/for-small-business-week-backup-withholding-rate-now-24-percent-bonuses-22-percent-workers-urged-to-do-a-paycheck-checkup

D14DFF0B t1_j9evj6u wrote on February 21, 2023 at 12:32 PM

Uh, below a million, the federal withholding rate for supplement income is 22%. For someone that has a $900k bonus, that's going to severely underwithhold.