Tax Day 2024 and How to Get an Extension from the IRS
Tax Day is on Monday, Apr 15, 2024. Not ready to file? Submit an electronic request to the IRS for an extension ASAP!
It’s the 2023 holiday season, and for fortunate employees, that means an end-of-year bonus! Yet many employees are disappointed when their bonus lands in their bank – usually a lower amount than anticipated. Here's a quick guide to help workers understand how bonuses are taxed.
It’s the holiday season, and for fortunate employees, that means a holiday or end-of-year bonus! However, many employees are not sure how much they will actually take home and are disappointed when their bonus appears in their bank account – usually in a much lower amount that originally anticipated. We have put this quick guide together to help workers everywhere better prepare for receiving a bonus.
A bonus is considered supplemental income - separate from your regular salary or hourly rate, but still considered income. Vacation pay and moving expenses are other examples of supplemental income, and although they are sometimes classified as fringe benefits, they rest under both definitions.
Bonuses can be taxed in two ways:
Now that you understand how the IRS taxes a bonus, it’s important to understand a few other aspects of bonus payments:
Use the PaycheckCity Aggregate and Flat Rate Calculators to accurately determine your take-home pay this holiday season!
Tax Day is on Monday, Apr 15, 2024. Not ready to file? Submit an electronic request to the IRS for an extension ASAP!
IRS has updated tax brackets for 2024. See how this affects your first paycheck this year!
Check out the updated 2024 Federal benefit limits for 401(k), HSA, and simple IRA, and more. Stay informed and plan your finances with confidence!