$$ ASA Bonus $$

[McNugent]

I'm sitting here looking at about how much I should receive from this signing bonus and it aint much. I'm trying to hang on to as much of this money as I can, so I have a couple questions for you guys that are a little more money savy.

1. At what % will this bonus be taxed? I've heard everything from 20% - 45%.

2. Is there anything I can do to my W-2 now to retain the most from the bonus?

3. Will we have the option to put it straight into our 401K to avoid the tax man altogether?

Thanks.

 

[Gorditas]

I'll add a couple of questions...

1. When is the bonus coming? None of the "ASA Connection" e-mails mention this.

2. I never did find a published table of what should be coming. Does anyone have a link? As bad as they screw up regular pay at the G.O. I worry about this.

 

[Wiggums]

1. At what % will this bonus be taxed? I've heard everything from 20% - 45%.

Bonus money is taxed at the same marginal tax rates as the rest of your W-2 income. No matter how you monkey with your W-4 the result at the end of the year will be the same.

 

[RemoveB4Flght]

1) depends on what state you live in
2) you can't do anything to your w-2, it's an earnings statement
3) unless you are over 50 and eligible for catch up contributions, your limit is the max your employer permits as a percentage of your pre tax salary or the maximum allowable per year as set by uncle sam, whichever is lower

 

[capt. megadeth]

Just to give you an idea....

We got $40K for our FO ratification bonus at UPS and I netted $25,400.....which is after Uncle Sam raped me with no lube. Not trying to rub in our bonus but I'm just giving you an idea of what you'll end up with with yours. You can count on around 40% tax initially.

 

[OpsCheckGood]

Hey Nuge, wuuuzuuup? I'm getting mine in 4 installments of Stoli and Olives! It's a tax loop-hole. Or, after the 3rd round of Martinis I won't give a crap!

 

[McNugent]

Hey Nuge, wuuuzuuup? I'm getting mine in 4 installments of Stoli and Olives! It's a tax loop-hole. Or, after the 3rd round of Martinis I won't give a crap!

You need to let me in on how you're pulling that off! Did you give up on vodka waters? I miss the poolside cocktails with ghetto ipod.

 

[McNugent]

I'll add a couple of questions...

1. When is the bonus coming? None of the "ASA Connection" e-mails mention this.

2. I never did find a published table of what should be coming. Does anyone have a link? As bad as they screw up regular pay at the G.O. I worry about this.

1. I heard Dec. 15th from one of the negotiators...

2. I haven't seen a table outside of the roadshows. I was wondering the same thing with the up do date seniority list.

 

[Speedtape]

I'm sitting here looking at about how much I should receive from this signing bonus and it aint much. I'm trying to hang on to as much of this money as I can, so I have a couple questions for you guys that are a little more money savy.

1. At what % will this bonus be taxed? I've heard everything from 20% - 45%.

about 29% if it is done right



2. Is there anything I can do to my W-2 now to retain the most from the bonus?

You may be able to affect the tax consequences some by immediately submitting a W-4 and claim the maximum exemptions. Or, you can simply file your 2007 tax return at the end of January to reconcile and claim any excess taxes paid above your 2007 tax liability (safest action.)

3. Will we have the option to put it straight into our 401K to avoid the tax man altogether?

NO! According to the legal expert at the roadshow, the only way that could be accomplished is if everyone agreed to have their bonus deposited in their 401K. This was not even possible because there is not 100% participation in the plan.

Thanks.

The above information is provided by a lay person, not an expert, however, to the best of other people's knowledge it is correct.

 

[xpdriver]

how much money?

 

[asayankee]

"You may be able to affect the tax consequences some by immediately submitting a W-4 and claim the maximum exemptions. Or, you can simply file your 2007 tax return at the end of January to reconcile and claim any excess taxes paid above your 2007 tax liability (safest action.)"

Yeah....right! Good luck trying to get the monkeys at the GO to adjust your W4 in a timely manner. It just took them over 5 weeks to process a simple address change for me. I wouldn't take this route....if we get it in December you'll get the refund soon enough next year.

 

[Inconceivable]

Bonuses are always taxed at 29%--this is to allow the government to get a little "float" from all the executive compensation that eventually is refunded back in April.

Sucks when it is a $500 and you qualify for food stamps.

 

[Palerider957]

After the tax man wraps it in sand paper and shoves it up your a$$...ask yourself if the remainder was worth FIVE YEARS of negotiations.

This pathetic signing bonus/retro pay is embarassing.

 

[McNugent]

This pathetic signing bonus/retro pay is embarassing.

I never said I voted for it, I'm just trying to figure out what to do with the little money I'm limping away from this mess with.

 

[TOOL CRIB]

Can you just up your 401K contribution to 100% for a few weeks to cover the check with the bonus in it? Then change it back down to normal afterwards?

 

[Palerider957]

I never said I voted for it, I'm just trying to figure out what to do with the little money I'm limping away from this mess with.

I wasn't picking on you, and I don't fault those who voted for it. This was a war of attrition.

 

[McNugent]

I wasn't picking on you, and I don't fault those who voted for it. This was a war of attrition.

copy dat!

 

[maxcackel]

A rep told me December 15th, 1.95% alpa, 40% tax, No 401k, and no official November 20th senority snap shot for total amount. Why no list from the mec I don't know, I guess I will trust my check is correct as it allways is?

 

[bluefly72]

"You may be able to affect the tax consequences some by immediately submitting a W-4 and claim the maximum exemptions. Or, you can simply file your 2007 tax return at the end of January to reconcile and claim any excess taxes paid above your 2007 tax liability (safest action.)"

Yeah....right! Good luck trying to get the monkeys at the GO to adjust your W4 in a timely manner. It just took them over 5 weeks to process a simple address change for me. I wouldn't take this route....if we get it in December you'll get the refund soon enough next year.

I changed my W4 last week and it was done the same day...

 

[bluefly72]

there is a loa that company has to pay the bonus within 30 days after union submits the distribution formula to the company....