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
Raises and SICK payout...
- Thread starter fatboy33
- Start date
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
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.
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
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.
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.
It will be fine
Well-Known Member
Wrong
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.
It will be fine
Well-Known Member
Wrong. They are withheld at different rates. They are taxed as wages.
SmithBarney
Well-Known Member
They are Taxes Withheld at the current/proper tax rate...
59 Dano
I just want to make friends!
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.
I was wondering why my MAP was so high ... definitely more than my 40 hours
SmithBarney
Well-Known Member
Line item from your paycheck "MAPAttBns" Believe what you want, I'll enjoy my extra week of vacation 
59 Dano
I just want to make friends!
Line item from your paycheck "MAPAttBns" Believe what you want, I'll enjoy my extra week of vacation
I'm not disputing what they call it on the check, I'm telling you how it is treated for tax purposes.
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