Bonus?

[SteveR]

With all this talk of bonus money coming up I thought I would beat DanTien to the punch and create a poll on this. 

So, how much do you think (know) you will get in your bonus over the next few months since some of them are given near the holidays and others in the first few months of the new year?

 

[Martha]

I expect a good "bonus" mostly because I am taking a small draw. But it will all be eaten by taxes.

 

[cj]

Year end bonus is a great way to fund next year's Roth...

CJ

 

[SteveR]

DW gets one at the end of the month. It will all (after tax) be invested.
I may get one (not a sure thing) next year (1st QTR). The amount is tied to goals and company performance. I made my goals but the company did not, so I get screwed. I may have enough for a couple tanks of gas (maybe ).

My bonuses have not ever been very much compared to what I hear about. I guess a lot of it is industry (service) related and also your pecking order in the company.

 

[Glo]

We get quarterly bonuses. Mine are usually about $1,500 (after taxes). I love getting a bonus; its like "found" money.

 

[Gone4Good]

Bonus will equate to about 80% of my total pre-tax comp. 100% of what's left after the government gets done mauling me is saved.

 

[Sheryl]

I included the bonuses we have already taken in March and June as part of a total annual bonus amount.   

Did not include dividend as that is intended to ofset S-Corp tax liabilities.

I might have lied about saving it all if I end up buying a new car, though.

 

[moghopper]

I might have lied about saving it all if I end up buying a new car, though.

I hope that car is for someone in Honduras.

 

[Sheryl]

I hope that car is for someone in Honduras.

Ouch

 

[Spanky]

Last year's bonus was $30K, but this year's bonus will be 0.

 

[lets-retire]

Dude?!?!?!?!? Your bonus was more than my pay!

Oh and my bonus was a $50.00 grocery card. I gotta find another job.

 

[cube_rat]

Dude?!?!?!?!? Your bonus was more than my pay!

Oh and my bonus was a $50.00 grocery card. I gotta find another job.

Yes, 30K is nice bonus, however Uncle Sam takes roughly 52% of it Plus high bonuses throw you into a higher tax bracket. Trust me, it's not all that's it's cracked to be,

 

[Spanky]

That's true. One of the drawback of a bonus is that your tax bracket will be raised. Last year, we had to pay AMT (alternative minimum tax) also. I am not complaining though.

P.S. Compensation that includes a bonus is not as rosy as it seems since the company artificially keeps the base salary low (relative to the market) and offers bonus as an incentive to work harder toward milestones and company objectives.

 

[SteveR]

That's true. One of the drawback of a bonus is that your tax bracket will be raised. Last year, we had to pay AMT (alternative minimum tax) also. I am complaining though.

P.S. Compensation that includes a bonus is not as rosy as it seems since the company artificially keeps the base salary low (relative to the market) and offers bonus as an incentive to work harder toward milestones and company objectives.

Maybe so, but, imagine doing all that and NOT getting a bonus? What would be worse? Paying additional tax and having the additional after-tax income or not having the additional income at all while still doing the same amount of work?

But, Dude, $30,000 bonus!! That is a chunk of cash.
Some one else reported 80% of income but not know the base it may not be all that much in the bigger picture.

 

[Gone4Good]

Yes, 30K is nice bonus, however Uncle Sam takes roughly 52% of it    Plus high bonuses throw you into a higher tax bracket.  Trust me, it's not all that's it's cracked to be,

I hate taxes about as much as anyone on the planet but keeping 48% of $30K is still better than 100% of nothing.

 

[Calgary_Girl]

I expect my bonus to be around $5K before taxes.

The wild card is hubby's bonus though....last year it was $0 but he's working on a big deal at work, which should hopefully happen this week. A co-worker did a similar sized deal last year and his bonus was $500K (yup, that's $500,000...not a type-o). Of course, he could again get nothing because his company was purchased by another company last May. Maybe he should just be happy to have a job and getting paid six figures

 

[lets-retire]

I'd only need about three or four years of 48% of a 30,000 bonus, then color me retired.

 

[Gone4Good]

I'd only need about three or four years of 48% of a 30,000 bonus, then color me retired. 

$43,200 - $57,600 I hope the retirement plan is better funded than that.

 

[lets-retire]

Mildly