# Bonus calculation

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.

Bonus Time: How Bonuses Are Taxed and Treated by the IRS

Paycheck calculator gives me:

 Your Pay Check Results Bonus \$10,000.00 Federal Withholding \$2,500.00 Social Security \$620.00 Medicare \$145.00 California \$1,023.00 CA SDI \$90.00 Net Pay \$5,622.00
 Calculation Based On Tax Year 2016 Bonus \$10,000.00 Federal Filing Status Supplemental Additional Federal W/H \$0.00 State California Filing status Supplemental 10.23% Additional State W/H \$0.00 CA SDI Yes

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.