I was supposed to get a bonus for $10k. But only about $4850 arrived in my checking account, so I’m wondering if their calculation was based on something less than $10k. I don’t have the pay stub with me. But let’s try to back calculate everything.
$149,000 into 24 pay periods = $6208.33
Regular take home pay = $3910.09. Regular tax rate = 0.62981349251. About 37% (ignoring property tax, sales tax, etc.).
Most recent paycheck: $8760.36. Difference beyond normal paycheck $4850.27. I expected more like $6298.13.
On $10k, $4850 paycheck is a taxation rate of 52%! Fuck that. If I assume I was taxed at the same rate before, the initial amount is only about $7700, not $10,000. UGH.
Let’s look at bonus taxation rates. Oops! They are taxed higher than salary income. fml.
Paycheck calculator gives me:
So it’s definitely higher than my normal tax rate, but there’s still an $800 difference in this and what I got. Many states have no extra tax on bonuses. Also, I learned California will charge 10.23% on earnings from stock options. Note to self: leave the state before cashing out stock options.
When you’re being taxed at 50%, calculating any expenditure as a percentage of your income is meaningless. The only thing that means something is calculating it as a percent of take home pay. Everything is 2X as expensive.
Still, can’t complain that much. Need to be conservative on this next trip to Florida so I can keep making serious progress through the second half of the year.