Anyone here work in payroll?

[rivercowboy]

Quick background: I’ve only ever worked for one company. I get paid biweekly.

Quick question about bonuses:
In the past, under different GMs I remember our bonus coming in as a separate payment from our paychecks in August or September.

Last several years under the latest GM we receive our bonuses rolled into a paycheck with our regular income.

Why are they doing this? Are there benefits for the company for this?

I look at my paystub and see most of that bonus going to taxes and my girlfriend works for a major corporation and her bonus this year was twice as much as mine and she paid less taxes because it came as a separate payment. I may be misremembering that detail but I’ve only had one cup of coffee this morning.

Thanks, I’ll hang up and listen.

 

[squeak]

Quick background: I’ve only ever worked for one company. I get paid biweekly.

Quick question about bonuses:
In the past, under different GMs I remember our bonus coming in as a separate payment from our paychecks in August or September.

Last several years under the latest GM we receive our bonuses rolled into a paycheck with our regular income.

Why are they doing this? Are there benefits for the company for this?

I look at my paystub and see most of that bonus going to taxes and my girlfriend works for a major corporation and her bonus this year was twice as much as mine and she paid less taxes because it came as a separate payment. I may be misremembering that detail but I’ve only had one cup of coffee this morning.

Thanks, I’ll hang up and listen.

It may be more expensive to do a separate check run.

The amount taken out is likely based on the highest marginal tax rate, or at least higher than what your girlfriend’s tax rate was that determined the amount withheld from her check. It can also depend on the timing of the payout, whether you’re still paying FICA, etc. How much you withhold is irrelevant to what you ultimately pay, though.

 

[rivercowboy]

It may be more expensive to do a separate check run.

The amount taken out is likely based on the highest marginal tax rate, or at least higher than what your girlfriend’s tax rate was that determined the amount withheld from her check. It can also depend on the timing of the payout, whether you’re still paying FICA, etc. How much you withhold is irrelevant to what you ultimately pay, though.

Thanks.