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Bonuses and Take-home pay

February 6, 2008

I get paid tomorrow and was able to view my paycheck online. I only am being paid for 40 hrs instead of 80 this period, but they did process my signing bonus in the first check (yes!) so I finally have some money to work with. They got all my direct deposit stuff set up in time (nice work!). I have it split between three different accounts, checking, short term savings (insurance, travel, car) and a long term savings (e-fund, maybe house/condo fund one day). Make savings automatic!

I’m still not ready to finalize a budget, as I’m not certain what my take home pay will be. I tried to figure out exactly how much I’ll be paying in taxes each month by taking total taxes paid divided by total gross pay in this check. I came up with about a 39% tax rate! Yikes, that can’t be right!

Google tells me that taxes on bonuses, while calculated as normal income, are withheld at a different rate, up to 40%. Well, that makes more sense! Good to know.

My 401k still isn’t ready for me to enroll. When I called the number to ask if this was normal, I was told “Please listen carefully as options have recently changed.” Then, there was a single ring, then silence. More silence. I was never given any options! I hung up and tried again, only to have it happen again. I pressed all the numbers and was directed to an operator who could not help me unless I “went through the system and entered my PIN” (which I did!). He suggested waiting another week, or trying the number again. Lame.

I was going to go hang out with the boyfriend tonight, but I think I’ll cancel. He has a lot of school work, and I have needed to do laundry for at least a week. This will give me time to start working on yesterdays to-do list. First up, taxes!

2 Comments leave one →
  1. Toxic Money permalink
    February 6, 2008 5:06 pm

    Good luck with your taxes tonight! Hope you get a nice refund (we did) 🙂

  2. February 13, 2008 8:04 am

    Good luck with taxes!

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