Raises and SICK payout...

Discussion in 'FedEx Discussions' started by fatboy33, Apr 27, 2019.

  1. SmithBarney

    SmithBarney Well-Known Member

    Sick pay is taxed at a "bonus" rate, not taxed at the same rate as hourly wages. So I've been told... I'm always sick so it doesn't matter
     
  2. ManInBrown

    ManInBrown Well-Known Member

    Sick day payouts are taxed at an insane rate. Last year was the first time I got paid out for unused. It was ridiculous. Never again
     
  3. It will be fine

    It will be fine Well-Known Member

    That’s not how taxes work. Your withholding may be higher but at the end of the year it’s just income taxed like the rest of your income.
     
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  4. Fixxxer

    Fixxxer Member

    Yeah what’s up with that? Last year my bonus was taxed at like 20% I have a TON of sick pay left (actually all of it) so I guess we’ll see what happens
     
  5. Fred's Myth

    Fred's Myth Nonhyphenated American

    The higher your income (whether from overtime or 'bonus') in any given week, the higher the withholding, because your gross income for that week is extrapolated (assumed to be) for 52 weeks. This temporarily pushes you into a higher tax bracket THAT WEEK. If significant enough, this COULD push your annual income into a higher bracket, affecting subsequent checks. In the end, your overall tax rate will be based on your adjusted gross income.
     
  6. SmithBarney

    SmithBarney Well-Known Member

    Here you go, Federal withholding on "bonuses" in 2017 was 25%, in 2018 was 22%. Much higher than your tax(federal) for your hourly wages which is around 11% IIRC. So taking your sick days "pays" better.
     
  7. McFeely

    McFeely Huge Member

    Withholding is not the same as tax rate. I understand it hurts on the check where the MAPP payout is, but you likely get the overpaid taxes back when you file your tax return.
     
  8. It will be fine

    It will be fine Well-Known Member

    Wrong
     
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  9. SmithBarney

    SmithBarney Well-Known Member

    Thanks for the detailed rebuttal...

    MAP is taxed as a cash bonus, when you call out sick its taxed as normal hourly wages.
    They are in fact two different rates.
     
  10. It will be fine

    It will be fine Well-Known Member

    Wrong. They are withheld at different rates. They are taxed as wages.
     
  11. SmithBarney

    SmithBarney Well-Known Member

    They are Taxes Withheld at the current/proper tax rate...
     
  12. 59 Dano

    59 Dano This is 1980, can't you afford a f***ing haircut?

    IWBF is the winner! MAP payouts aren't taxed as any type of bonus because they aren't any type of bonus - they are wages. Everyone gets them each year, and all FT employees get 40 hours of them; all PT employees get 20 hours of them.

    If you get any significant amount of OT then you lose money by using them. You lose the OT you would have otherwise earned and been paid for working. In addition, since the calculation of MAP payouts factors in the OT you worked throughout the year, your payout will be more per hour than your normal wage.
     
  13. Fixxxer

    Fixxxer Member

    I was wondering why my MAP was so high ... definitely more than my 40 hours
     
  14. SmithBarney

    SmithBarney Well-Known Member

    Line item from your paycheck "MAPAttBns" Believe what you want, I'll enjoy my extra week of vacation ;)
     
  15. 59 Dano

    59 Dano This is 1980, can't you afford a f***ing haircut?

    I'm not disputing what they call it on the check, I'm telling you how it is treated for tax purposes.