online.wsj.com — Most workers will receive modest raises this year and next, as employers reward employees with performance-linked bonuses rather than broad salary increases, according to a survey by consulting company Hewitt Associates Inc. to be released today. Employers are making employees work harder for their money.
Aug 29, 2006 View in Crawl 4
Closed AccountAug 29, 2006
Bonuses are taxed at a higher rate because it in pay for time not worked. My Bonuses are taxed almost 40%. I'd rather get it on my weekly check so I can hide it for taxes on my 401k .
thekinginyellowAug 29, 2006
i find that bonuses are only a temporary fix and raises are better in the long run.example: i make $x per year. i can't afford to pay 100% of my bills. delinquent payments add up. i get a bonus and catch up on bills. repeat cycle. no matter how relieving a bonus is they never relieve situations for more than a month. instead of bonuses, i would prefer on overall raise to my salary to evenly compensate my expenses monthly.
copyright1968Aug 29, 2006
Many companies offer raises as a percentage of pay, such as 3 or 5% of base pay. By offering bonuses instead, they keep the base pay lower so when one does get a raise the amount is smaller.
fucknutAug 29, 2006
"Right before you receive your bonus, submit a new W-4 form with your boss, changing the number of exemptions on your payroll. By increasing your exemptions, the government will withhold less taxes. Then, after you get the bonus, submit another W-4 to restore your exemptions to the normal level. This fools the computers into giving you the money that is rightfully yours."details here:<a class="user" href="http://www.ricedelman.com/planning/taxes/bonus.asp">http://www.ricedelman.com/planning/taxes/bonus.asp</a>
thekinginyellowAug 29, 2006
i can't agree more.being at one place for so long allows you to learn how it works. i know where all the files are, i know when the deadlines are, i know how to get everything done with a certain level of quality and in a timely manner. how long will it take the next guy to figure it out once i'm gone? we had an intern about 6 months ago that was here for 90 days and never figured it out. take care of me when i'm struggling financially and you won't lose money in the long run by having to waste time on new employees who have to learn the ropes.valuable knowledge walking out the door indeed!
tubatechnoAug 29, 2006
And if its not directly a cash bonus, then companies don't have to pay taxes on them.
gd007Aug 30, 2006
"Employers are making employees work harder for their money." -- let me go back to work then. bye kevin!