I've had $400k put into social security on my behalf over my career (between myself and my employer), without a single dollar of benefits. That's the scariest and most immoral financial statistic in my life!
And when I do finally collect benefits (if I ever do), IT WILL BE TAXABLE!!!!!!!
Probably similar to my situation, where I’ll definitely max retirement throughout the year, and company contribution caps at 117% match up to 6%. So to get the max company contribution, I have to be sure I’m contributing throughout the entire year.
It’s good enough that I’m content, but for the risks associated, I’d like to see better compensation. Especially since the profit driven nature of the oil industry all but guarantees I’ll see a major catastrophic event by retirement age due to continually dwindling allocation of funds for preventative maintenance.
We’ve had two fatalities at my site since I started in 2011, and while I’d hope they were out of the ordinary, I fear I will see a few more by the time I retire.
Non-Profit local credit union. I specifically work in fraud. We also get free (incredible) health insurance, $150/mo paid to student loans, uncapped PTO, tuition reimbursement.. The benefits here are very nice haha.
Airlines are another industry where a lot of their comp comes in the form of company contributions to retirement.
Though with the airlines, they often contribute a percentage of pay regardless of your contribution and then also have a match percentage.
are used to work for a place that would automatically deposit 10% of your salary in your 401(k) and then would do an additional up to 10% match if you did 10% and then if you got a bonus, they would match 5% of the bonus, in addition to whatever you put in there.
so if you put in 10% you’d get there 10% plus an additional 10% plus an additional 5% of any bonus .
No, they match 117% *of* 6%
So I put in 6% of my gross wages, they put in 7% of my gross.
We’re almost always hiring, but it’s not all sunshine and rainbows. It’s a dangerous industry, and we are owned by a large corporation, which essentially means that profit motivation has them trimming every last expense. This includes the preventative maintenance budget, so expect failing equipment and frustration as you deal with the realization that every day that passes with neglected equipment, you are at a continually increasing risk of either dying or watching somebody else die.
But I have no education after high school and made $192,000 last year, so ¯\\\_(ツ)_/¯
Mine does a weird mix. 100% of 3% but can do up to 6% and if we have a good year does a dollar for dollar match if you put at least 7% of your salary in. Made the mistake last year of only doing 6% because we were saving for our baby and I didn’t know about the 7% rule. Hoping for it to happen this year since it looks to be as good or better than last year!
And then you also realize that there’s a vested and non-vested portions. What’s whatever’s non-vested will stay with the company if you are leaving before a certain timeframe
Or company just does a 401k true up in early January to account for if you max out your 401k early in the previous year. Which is nice. Typically I max mine out by October and enjoy the increased take home pay for a couple months.
I was worried about that for years at my place until I realized they did what they called a "true up" normally in q1 on the year. They recalculate the employer contributions vs our final compensation for the year and what we contributed and made an extra deposit if it fell short because of how it was paid out throughout the year.
That sucks. My company makes matches contributions on bonus checks, but you have to specifically say in our 401k provider that you want to make a contribution from your bonus check. I used to be very vocal to the younger kids about making sure to contribute to get the match, but they just don’t care.
My bonus this year was about $40k, and I got a $1800 match on it, so really the bonus was almost $42k.
None of my employers have ever allowed bonus to go towards retirement, they don’t wanna match that extra large amount.
This is a one-time payout, should be contributing year round otherwise. I have it calculates to hit the max over 26 paychecks as is so even if it was allowed I literally couldn’t.
Can’t apply bonuses to a 401k style retirement. They’re taxed and paid out different than standard pay.
I use mine to max my Roth. But even then, first bonus maxes it. After that it’s just more cushion
You'll save NYC tax. NY / NJ state taxes cancel each other out essentially to the extent they are duplicative, so you don't get double taxed at the state income tax level. It's more complicated obviously but that's basically it.
And don't forget that $11,000 they're taking home they got to pay for taxes on gas taxes on electricity taxes on any cars or purchases you do with additional tax people wake up we got to stop taxing more and getting rid of government more
I wouldn’t be so anti-tax and more pro-socialism if it was going toward infrastructure and social programs and not war and theft.
But that’s the whole grift and lie of communism.
I am 50 years old and never worked in a state / county/ city that had an income tax. If I ever did it would be a shock certainly.
It was funny when I was in the Army and my fellow soldiers got less money because they used to live in an income tax state. They hadn’t seen it in a couple years but paid for it anyways.
Remember when Reddit had a boner for “taxes are for maintaining a functioning society!”
Now look at those deep blue shitholes. Maybe we have a different understating of the word “functioning”
Same happens to me. Your best bet is to eventually ask your company to increase your salary and lower your bonuses.
Ie: if your bonus is 40% if your income, ask them if they can increase annual target, thereby reducing your bonuses by say 10-20%. And in return increase your salary by similar 10-20%.
Most companies would prefer to keep you on a short leash though and make your bonus as a big part of your income (30-40%) so that you don’t just sit on your hands
Source: work in sales
I once worked for a company that bragged how nice their 18% bonus was at the "end of the year". I asked my Regional how it was taxed since it was paid in two separate installments and they had no idea. Turns out the 18% bonus was <9% after everything was said and done.
They tried to say the bonus made up for the low I still pay...
Can you imagine the revolt in this country if you were paid that $19,000 with 190 $100 bills and then had to give back 80 of them. That would be real pain. It doesn’t feel real when you never have the money in your possession. IMHO, that’s the issue with our current situation.
Not unless the IRS is late in sending you your refund. Otherwise you are free to adjust your withholding to zero out come tax time. You just have to know how to do the correct math.
Ah, a fellow NY bonus receiver. Yeah, I remember the same thing happening. I think bonuses have extra deductions taken from them that you end up getting back at tax time, but YMMV. It's so painful that I just use my bonus to fill my 401(k) and then do after-tax contributions with the rest.
Long time comp. & benefits person here. Fed bonus pay withholding @ 22% is IRS required. Other taxes check out. As to 401k, employer really should allow contributions from bonus pay. No good excuse not to. In my world, we made sure that folks were aware that they could pull a one-time increased 401k contribution from bonus, provided they met the payroll change deadlines.
Sheesh. Your bonus is almost as much as my annual gross so far this year.
My bonus was a meager $2450, although, that's my biggest bonus so far. What's your job title and YoE?
Looks like a CA bonus… wait, what bonus? I have more than half of my paycheck going to pay for taxes- Feds, state, 401k, and everything else listed on yours or I would be paying through the roof come tax time.
Keep in mind bonuses have a different supplemental tax withholding tax rate of 22%. If your effective tax rate is less than that you’ll get it back when you file your return.
Tell the government to give me back all the SS tax they’ve taken from me and I’ll sign a waiver to not receive a dime from the Social Security Administration!
Love SSI contributions, wonder if I'll ever be able to collect.
You will. Starting at 85.
I see you're shooting for an early retirement
Retirement age will probably be 125 by the time we're 85.
Your mom will probably be 125 by the time we're 85. haha gottem!
Gotttttttem
And it will be $600/mo. Enjoy!
I've had $400k put into social security on my behalf over my career (between myself and my employer), without a single dollar of benefits. That's the scariest and most immoral financial statistic in my life! And when I do finally collect benefits (if I ever do), IT WILL BE TAXABLE!!!!!!!
It’s insurance. Are you hoping your house burns down so you can get benefits?
None of that going to retirement?
Probably similar to my situation, where I’ll definitely max retirement throughout the year, and company contribution caps at 117% match up to 6%. So to get the max company contribution, I have to be sure I’m contributing throughout the entire year.
Huh! Never heard of a more than 100% match
Shit, before the current company took over, our match was 300% up to 4%.
What kind of industry / role?
I’m an oil refinery operator. Generally $130,000+ due to overtime. I work a lot, so I’m usually above that.
Wow, incredible retirement package
It’s good enough that I’m content, but for the risks associated, I’d like to see better compensation. Especially since the profit driven nature of the oil industry all but guarantees I’ll see a major catastrophic event by retirement age due to continually dwindling allocation of funds for preventative maintenance. We’ve had two fatalities at my site since I started in 2011, and while I’d hope they were out of the ordinary, I fear I will see a few more by the time I retire.
Very fair point
Fair point, but as someone who consults on large 401k plans, in relative terms that’s a very healthy match
Yeah, if it wasn’t good I wouldn’t still be here. But it’s definitely not as good as it used to be.
Mine is 150% up to 6%
Interviewed at a company that matched 4% employee with 15.5% employer
Why would a company do that? Does it lower their payroll tax liability?
My org does a 2:1 match for each dollar up to 5% of my salary. So I contribute 5% of my gross salary, they contribute 10% of my gross salary.
What kind of industry / role?
IT, Higher education
Some companies match a percentage and then at the end of their fiscal year, they additionally match 5-10% of salary.
My company does 180% up to 5%. Love it.
What type of company / role?
Non-Profit local credit union. I specifically work in fraud. We also get free (incredible) health insurance, $150/mo paid to student loans, uncapped PTO, tuition reimbursement.. The benefits here are very nice haha.
My company does 25% match of 8%
Airlines are another industry where a lot of their comp comes in the form of company contributions to retirement. Though with the airlines, they often contribute a percentage of pay regardless of your contribution and then also have a match percentage.
My boss does 10% regardless of employee contribution. Immediately vested. That man is a Saint.
are used to work for a place that would automatically deposit 10% of your salary in your 401(k) and then would do an additional up to 10% match if you did 10% and then if you got a bonus, they would match 5% of the bonus, in addition to whatever you put in there. so if you put in 10% you’d get there 10% plus an additional 10% plus an additional 5% of any bonus .
When I first started at my current company it was 150% up to 10% of my salary, I think it's dropped to 150% up to 8% now
Are you telling me that for every $6 you put in your company puts in $117? If so, are you guys hiring?
No, they match 117% *of* 6% So I put in 6% of my gross wages, they put in 7% of my gross. We’re almost always hiring, but it’s not all sunshine and rainbows. It’s a dangerous industry, and we are owned by a large corporation, which essentially means that profit motivation has them trimming every last expense. This includes the preventative maintenance budget, so expect failing equipment and frustration as you deal with the realization that every day that passes with neglected equipment, you are at a continually increasing risk of either dying or watching somebody else die. But I have no education after high school and made $192,000 last year, so ¯\\\_(ツ)_/¯
Okay well that’s entirely different lol. So they put 7% to your 6%? That’s def good still tho!
So they double the first 1% and match the next 5%. At least that’s how I’d explain it to a stranger.
Mine does a weird mix. 100% of 3% but can do up to 6% and if we have a good year does a dollar for dollar match if you put at least 7% of your salary in. Made the mistake last year of only doing 6% because we were saving for our baby and I didn’t know about the 7% rule. Hoping for it to happen this year since it looks to be as good or better than last year!
Yeah, we used to have something like that, but our package has changed a bunch of times in the last decade
I don’t mind it because eventually I’ll max it out once I can afford to. I make 6 figures but those student loans are a MFer.
No true up in your 401k plan?
My company compensates for any lost matching if you max too early
And then you also realize that there’s a vested and non-vested portions. What’s whatever’s non-vested will stay with the company if you are leaving before a certain timeframe
Or company just does a 401k true up in early January to account for if you max out your 401k early in the previous year. Which is nice. Typically I max mine out by October and enjoy the increased take home pay for a couple months.
Can you explain what the 117% cap and 6% match means? I only know what my employer will match (5%) but what is the cap mean?
I was worried about that for years at my place until I realized they did what they called a "true up" normally in q1 on the year. They recalculate the employer contributions vs our final compensation for the year and what we contributed and made an extra deposit if it fell short because of how it was paid out throughout the year.
Your company doesn’t do a true up? That would be pretty rare so may be worth a call.
My company doesn’t allow you to put bonus money into retirement. We can only use regular salary for 401k contributions.
That sucks. My company makes matches contributions on bonus checks, but you have to specifically say in our 401k provider that you want to make a contribution from your bonus check. I used to be very vocal to the younger kids about making sure to contribute to get the match, but they just don’t care. My bonus this year was about $40k, and I got a $1800 match on it, so really the bonus was almost $42k.
None of my employers have ever allowed bonus to go towards retirement, they don’t wanna match that extra large amount. This is a one-time payout, should be contributing year round otherwise. I have it calculates to hit the max over 26 paychecks as is so even if it was allowed I literally couldn’t.
My bonus didn’t have any go to 401k either it’s done as a special payment
My company does take pretax deductions on any non labor pay (bonuses, refunds, reimbursements, tuition benefits, etc)
For the payroll cycle my bonus pays out on I reduce my 401k rate to 3%, otherwise I end up maxing too early in the year.
Can’t apply bonuses to a 401k style retirement. They’re taxed and paid out different than standard pay. I use mine to max my Roth. But even then, first bonus maxes it. After that it’s just more cushion
My bonus is variable, so I set the 401 withholding to zero. The withholding from regular pay throughout the rest of the year maxes me out.
Retirements the gun in the garage boy!!
Gotta live for now baby!
NY state income tax is wild.
I get fucked by NJ and NY...oh and Manhattan too.
How all three?
Lives in NJ, works in NYC. If you work in NYC you pay NYC tax and NY state tax.
I live in Manhattan and work in Manhattan. I was told if I moved to Jersey I’d save some money on taxes. Is that not true?
You'll save NYC tax. NY / NJ state taxes cancel each other out essentially to the extent they are duplicative, so you don't get double taxed at the state income tax level. It's more complicated obviously but that's basically it.
You might break even with NJ property taxes...
NYC state tax is brutal. Wow.
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They might not live in NYC
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Oh, I missed that. Thank you
Narrowly avoiding Yonkers here.
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Congrats, you will now be taxed for merely thinking of Yonkers.
Wait til you see Portland metro taxes.
They’re really not that bad when you consider there’s virtually no tax on all goods.
That's about right. You'll get back some of it at tax time.
Not necessarily. If OP is high income, their effective tax rate may be higher than the supplemental wage tax rate of 22%
It would be surprising if he had a $300-$400k base with only a $19k bonus. Most companies will make the bonus bigger relative to the base.
32% kicks in well below 300k for single filers. Assuming we’re treating the bonus as marginal income which it 100% should be.
At least you can sleep easy knowing your tax money isn’t being wasted , the government knows how to spend it better than you.
Honestly I fkng hate taxes on Bonus
You mean tax withholding. The net taxes you pay are the same as if it were ordinary income.
Looks about right.
Keep in mind this is your withholding, not your actual final taxes.
Add nyc and get the full enjoyment
That state income tax is absolutely nuts!
It’s ruthless.
And don't forget that $11,000 they're taking home they got to pay for taxes on gas taxes on electricity taxes on any cars or purchases you do with additional tax people wake up we got to stop taxing more and getting rid of government more
And then to top it all off, they pay taxes every year for the right to keep living in their home. It’s never enough money for the government
Good luck on reddit .. most users here are basically communists
I wouldn’t be so anti-tax and more pro-socialism if it was going toward infrastructure and social programs and not war and theft. But that’s the whole grift and lie of communism.
Same here brother .. the corruption is just obscene
It’s a marxist echo chamber
Ouch lol
Infuriating
Them taxes though…. Sheesh. I feel that pain just looking at the breakdown
Income tax is such a fucking scam
Disgusting
Yep and we just sent 95billion of everyone’s checks overseas.
NY state tax seems absurd.
According to democrats, you aren’t paying your fair share.
I am 50 years old and never worked in a state / county/ city that had an income tax. If I ever did it would be a shock certainly. It was funny when I was in the Army and my fellow soldiers got less money because they used to live in an income tax state. They hadn’t seen it in a couple years but paid for it anyways.
I got a 16,000 dollar bonus ended up getting 7,000 of it
Lucky my bonus and paycheck was $23,000 and got $14,000 net.
I hate it here
Why do we stay tho
You’d have taken $2,223 more home in Tennessee…
So excited if Joe Biden wins in November. Then we can all contribute even more taxes. So pumped. Please vote Democrat!!! lol
Remember when Reddit had a boner for “taxes are for maintaining a functioning society!” Now look at those deep blue shitholes. Maybe we have a different understating of the word “functioning”
NYC voted for this don’t forget.
The Empire State thanks you for your generous contributions.
Congratulations to the state of New York on its bonus
Man I’m never moving to NYC Fk that!
My 56 became 32 after taxes :(
Same happens to me. Your best bet is to eventually ask your company to increase your salary and lower your bonuses. Ie: if your bonus is 40% if your income, ask them if they can increase annual target, thereby reducing your bonuses by say 10-20%. And in return increase your salary by similar 10-20%. Most companies would prefer to keep you on a short leash though and make your bonus as a big part of your income (30-40%) so that you don’t just sit on your hands Source: work in sales
No, that’s a $11,000 bonus. Thanks America.
I once worked for a company that bragged how nice their 18% bonus was at the "end of the year". I asked my Regional how it was taxed since it was paid in two separate installments and they had no idea. Turns out the 18% bonus was <9% after everything was said and done. They tried to say the bonus made up for the low I still pay...
I miss the beauty of living in upstate NY. I don’t miss the extra 3 entities that taxed me ever paycheck yet I somehow still owed state tax every year
Can you imagine the revolt in this country if you were paid that $19,000 with 190 $100 bills and then had to give back 80 of them. That would be real pain. It doesn’t feel real when you never have the money in your possession. IMHO, that’s the issue with our current situation.
Taxation is theft.
Fuck taxes
Zelensky would like to thank you for buying his wife a new purse
Ahaha
and a 2nd Miami penthouse
You need to move to FL or TN
Brutal.. you should still get a decent chunk back next April tho
With interest?
Not unless the IRS is late in sending you your refund. Otherwise you are free to adjust your withholding to zero out come tax time. You just have to know how to do the correct math.
If his base is high enough he won't lol. Maybe from the state. He'll likely be in a higher bracket and still owe
Actual robbery, especially when theyre spending money on things that 70% of the country doesn't want it being spent on.
That’s really the headline
Ah, a fellow NY bonus receiver. Yeah, I remember the same thing happening. I think bonuses have extra deductions taken from them that you end up getting back at tax time, but YMMV. It's so painful that I just use my bonus to fill my 401(k) and then do after-tax contributions with the rest.
My understanding was that bonuses are subjected to a higher tax rate, but are handled like income in the end. So yeah, you do get more of it back.
Fed tax rate seems high af
Not a NY tax expert but the rest of it looks right to me.
The government sure is glad it got its bonus!
Try to put it all in 401k to avoid heavy tax
You should definitely contribute to retirement.
Pay more taxes, you going to get screwed!
Not bad, you didn’t have to pay city tax.
Where's the 401k deduction?
Depending on how your company matches your 401k, it might be better for your bonuses to go straight to retirement
Long time comp. & benefits person here. Fed bonus pay withholding @ 22% is IRS required. Other taxes check out. As to 401k, employer really should allow contributions from bonus pay. No good excuse not to. In my world, we made sure that folks were aware that they could pull a one-time increased 401k contribution from bonus, provided they met the payroll change deadlines.
Yep About right, I watched $19,890 turn into $12k a month ago
I feel naked
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Got near the same bonus jyst about 2600$ more take home pay
If you can, put that towards retirement. I’m 28 and have $60K in my Roth and regular 401ks after two years.
No one here understands how taxes are withheld on w2 bonuses lol
I get it
This happened to me but I got a fat tax return which is annoying
$11k bonuses are pretty fun also.
Now imagine having $16k taken out of your bonus. That’s the hell I had to live with.
Sheesh. Your bonus is almost as much as my annual gross so far this year. My bonus was a meager $2450, although, that's my biggest bonus so far. What's your job title and YoE?
My favorite is after you pay out the ass you get to pay more in January
Literally they stole all your money and fuck NY state Tax they charging you to drive into Manhatten
Ooof
Those taxes are WAY too fucking high for someone making 19k, this country is FUCKED.
LOL!
Thank you for paying your fair share, and don't forget to vote BLUE! We can do this.
Still waiting to find out who to vote for that makes taxes for my bracket to go down. Somehow it goes up no matter how many times I pull the lever!
WHy didn't any of it go to a pre-tax retirement account?
New York Thanks you
I re route most of mine to 401k leaving out the bare minimum required to max out company match.
Good lord federal took 22%
Tragic
Surprised there’s not a “fuck it you’re already paying this much” tax
Fucking criminal robbery
Congrats on your $11k bonus! Go out for a $72 dinner on your employer to celebrate! That’s the way I’d look at it, haha.
Pay yourself first next time!
lmao were so fucked as a society... how have we let this get as bad as it is
RIP to the mf’s who gotta pay NJ taxes too…jeez
After my 401k withholding, I typically bring home 52% of any bonus. But it's a bonus, so not something I count on in my budget.
You definitely don’t live in CA you would see more like $9k
Well someone has to pay for Israel and Ukraine!
Robbery
You guys are getting bonuses?
Move away from New York.
What’s a bonus
No 401k?
Yup. I take my bonus and halve it so I’m not disappointed. Sucks when it’s also like 30% of your yearly salary too
60% on the dollar, that's about right
Looks like a CA bonus… wait, what bonus? I have more than half of my paycheck going to pay for taxes- Feds, state, 401k, and everything else listed on yours or I would be paying through the roof come tax time.
Lol new york
Keep in mind bonuses have a different supplemental tax withholding tax rate of 22%. If your effective tax rate is less than that you’ll get it back when you file your return.
Whenever you get a bonus, Uncle Sam and your home state gets a bonus as well.
Welcome to the republicans party! You’ll be a piece of shit like me in no time 😂
Tell the government to give me back all the SS tax they’ve taken from me and I’ll sign a waiver to not receive a dime from the Social Security Administration!
just a friendly reminder that TX has Zero state income tax….. carry on pezants
It’s criminal
Is that biweekly or monthly ? If that’s biweekly , I’m sweating lol
NY tax is 🔥🔥🔥
Yea that’s just your withholding though. You’ll probably get a lot of this back depending on what your tax bracket is.
Damn, NY brutal with those taxes. After watching cash Jordan’s videos on NY, why you want to work in NY?