Post by Logan on Apr 13, 2017 20:47:36 GMT -6
New plan for state worker bonuses should mean a lower tax bite
California state workers won’t lose as much of their $2,500 bonus checks to taxes as they once thought.
Reversing a previous decision, the State Controller’s Office is working to issue the bonuses in such a way that they won’t be taxed at a higher rate than workers normally see on their paychecks.
Next week, the office expects to tell workers when they should see the extra money in their paychecks.
State officials in January told The Bee that bonuses for workers represented by Service Employees International Union Local 1000 would be issued as discrete checks, triggering a higher tax withholding rate because they would be considered supplemental income. That rate would have hit 35 percent between state and federal taxes, eating up $880.75 from the bonuses.
Read more here: www.sacbee.com/news/politics-government/the-state-worker/article144281999.html
California state workers won’t lose as much of their $2,500 bonus checks to taxes as they once thought.
Reversing a previous decision, the State Controller’s Office is working to issue the bonuses in such a way that they won’t be taxed at a higher rate than workers normally see on their paychecks.
Next week, the office expects to tell workers when they should see the extra money in their paychecks.
State officials in January told The Bee that bonuses for workers represented by Service Employees International Union Local 1000 would be issued as discrete checks, triggering a higher tax withholding rate because they would be considered supplemental income. That rate would have hit 35 percent between state and federal taxes, eating up $880.75 from the bonuses.
Read more here: www.sacbee.com/news/politics-government/the-state-worker/article144281999.html