Support NeoGAF

[BearFlexington]

The taxes will be taken out of their paycheck that includes that bonus. They won't be seeing any tax increase at the end of the year.

Bonuses are taxed at a much higher percentage than typical salary in CA. The same with commission. Here, it's 35-40%. Is this not the case in Texas?

 

[johnny956]

Bonuses are taxed at a much higher percentage than typical salary in CA. The same with commission. Here, it's 35-40%. Is this not the case in Texas?

The bonus itself is taxed higher initially but overall at the end of the year your entire tax is based on overall income so it's really not

 

[Zoe]

Bonuses are taxed at a much higher percentage than typical salary in CA. The same with commission. Here, it's 35-40%. Is this not the case in Texas?

Does that have to do with state taxes?

Federally, no matter how it's done, it all works out to the same in the end. Employers take out a large percentage on bonus-only checks as a matter of convenience, not rule. If the bonus is tacked onto a normal paycheck, then they will use whatever method (typically percentage, sometimes table) to figure out how much to tax the lump sum.

 

[lastflowers]

no state tax in texas

 

[simplayer]

Bonuses are taxed at a much higher percentage than typical salary in CA. The same with commission. Here, it's 35-40%. Is this not the case in Texas?

I believe they'll tax you as if you were making that amount every pay period. If too much tax is withheld, you'll get it back at tax time.

 

[norm9]

Only $100,000?

 

[banefirelord]

That's a hell of a PR move.

 

[Zyae]

That's a hell of a PR move.

Or he just cares about his employees

 

[TxdoHawk]

That's a hell of a PR move.

Or he just cares about his employees

Probably more the latter. That's some expensive-ass PR, and on top of the cash outlay he could easily lose good talent in scenarios where people use that extra money to launch businesses, go find alternate career paths, etc.

Contrast to Zynga, who tried to strong-arm people out of unvested stock to make sure they wouldn't be rich enough to fly away.

 

[Hazmat]

Bonuses are taxed at a much higher percentage than typical salary in CA. The same with commission. Here, it's 35-40%. Is this not the case in Texas?

Texas has no state income tax, so there's no jump on how bonuses are taxed compared it normal income.

 

[NullPointer]

Thats $138,000,000 given away.

That's an investment.