This form is a sample letter in Word format covering the subject matter of the title of the form.
Example With Bonus In Clark
Category:
State:
Multi-State
County:
Clark
Control #:
US-0002LR
Format:
Word;
Rich Text
Instant download
Description
Form popularity
FAQ
"It's a one-year membership in the Jelly-of-the-Month-Club." "Clark, that's the gift that keeps on giving the whole year."
It's Christmas eve, and Clark's bonus finally arrives...a one year membership in the Jelly-of-the-Month Club.
After Cousin Eddie kidnapped Clark's boss and he told Clark to add 20% to his usual bonus, that would bring Clark's bonus to $19,200, conservatively. However, some sleuths believe the bonus would have been $20,000 and adding 20% would easily cover paying for the pool — $24,000.
'We're Gonna Press On, And We're Gonna Have The Hap, Hap, Happiest Christmas Since Bing Cosby Tap-Danced With Danny ing Kaye'
He and his associate Bill discuss what they're planning to do with their bonuses, and Clark reveals that he's going to put in a swimming pool.
Bonuses are considered earned income just like your salary or other work wages, which means they're subject to ordinary income tax rates. When it comes time to file your annual tax return, you'll see your bonus amount combined with other earned income and listed in Box 1 of your W-2.
In California, bonuses are taxed differently from regular income. They are considered supplemental income and are subject to both federal and state taxes. California uses a flat rate for state tax on bonuses, distinct from regular income tax rates.
If the recipient is an employee, the employer should always report wages, salaries, fees, bonuses, commissions, tips and other compensation as income on the employee's W-2, not on a 1099.
One rule of thumb is to set a percentage of every windfall (e.g. 10% or 20%) — whether a bonus or a birthday check — to spend, and save the rest. To get the most out of a bonus, though, many people opt for a 401k bonus deferral and put some or all of it into their 401(k) account.
One of the most effective ways to reduce taxes on a bonus is to reduce your gross income with a contribution to a tax-deferred retirement account. This could be either a 401(k) or an individual retirement account (IRA).
