The only time I have ever cared is when I’ve gotten a bonus. The tax rate is much higher on a bonus. I’d much rather my company just pay me $25 more a week than a bonus in December.
US tax rate isn’t different on bonuses, but the withholding is.
The govt sees you getting paid a shit ton one month and thinks it’s gonna be like that every month from now on so they keep a bunch of extra money so they can be sure you pay your taxes. Then at the end of tax season when you file, you get the extra back in your return.
The only time I have ever cared is when I’ve gotten a bonus. The tax rate is much higher on a bonus. I’d much rather my company just pay me $25 more a week than a bonus in December.
Tax isn’t higher on a bonus. It’s counted as taxable income like the rest.
Edit: Though you might live in a different country to me–I’ve heard some people do
US tax rate isn’t different on bonuses, but the withholding is.
The govt sees you getting paid a shit ton one month and thinks it’s gonna be like that every month from now on so they keep a bunch of extra money so they can be sure you pay your taxes. Then at the end of tax season when you file, you get the extra back in your return.
It would average out to be the same at the end of the year.
I waive mine into my pension tax free, future me can enjoy it when i’m earning less and thus on a lower tax band