Quote:
Originally Posted by radioman
When you get paid a bonus or vacation pay in a paycheque it adjusts and assumes you make that paycheque on a regular basis and deducts more tax. It happens when I get my quarterly bonus'.
If you're making $1000 every 2 weeks the system knows you're making $24k a year.
All of the sudden you get $3000 and the system thinks you're making $72k a year and adjusts tax accordingly.
This is my understanding of it and I believe it to be correct.
|
^this. When I got my commission I was like "wtf... almost 1/3 gone in taxes"