Paycheck question...what are the pros and cons? I get paid $17/hr but my paycheck reads $8/hr..?

Question

I get paid (for example) $17/hr but my paycheck reads $8/hour and the difference is listed under "Bonus Pay"??? What are the pros and cons to this? Am I being cheated somehow??

Answer 1

There should be no difference.  Your bonus is subject to the same income and social security taxes as regular pay.  Your employer might think it is not subject to workers compensation insurance.  If you happen to get hurt on the job, it would be helpful to show a regular pattern of bonus payments.  (A bonus should be extra and unusual.  A bonus equal to $9 per hour every paycheck doesn't look like a real bonus.)

Answer 2

Your not being cheated if your check adds up to 40 hrs at $17. I don't know for sure but is your bonus pay being taxed or just your $8 hr? If its not taxed you'll have to declare this at the end of the year and you would save money by not being taxed for the entire check at once, also, this money, if you choose, could be put into a fund and not taxed until you take it out later.

Answer 3

yes

Answer 4

They take out for social security, state and local taxes.

And if you signed up for a 401K, that is taken out

"before"taxes. Your medical is taxable income,

and is under Bonus Pay, since it is a benefit. <}:-})

Answer 5

Yes. When and if you have to file unemployment you are gona get tiny checks, they will be based on the $8.

Answer 6

Doesn't really matter as long as the total is right.  Bonus and wages/salary are taxed the same.