RE: Bonus instead of raise -- why?

[Matthew Horn <mhorn -at- macromedia -dot- com>]

You can bet the bean-counters factored this (not paying FICA, comp, etc)
into the decision. I would also add that many times bonuses don't qualify
for application towards your 401k, so the employer does not have to make
matching contributions, either.

-matt

  >>-----Original Message-----
  >>From: dthomps -at- foundationsoft -dot- com [mailto:dthomps -at- foundationsoft -dot- com]
  >>Sent: Monday, October 01, 2001 4:01 PM
  >>To: TECHWR-L
  >>Subject: RE: Bonus instead of raise -- why?
  >>
  >>
  >>Other respondents have raised very valid points about 
  >>"compounding" your
  >>raise. But I would also like to raise another, stickier, issue.
  >>
  >>I'm not entirely sure if it's legal or not, but I used to 
  >>work for a company
  >>which paid bonuses in a big amount and did not withhold 
  >>taxes on them. I'm
  >>not entirely sure of all the technicalities, but I believe 
  >>because they did
  >>not withhold the taxes, and because it was a "bonus" they 
  >>saved a lot of
  >>money on taxes on their end (Workers' Comp rates, employer 
  >>share of FICA,
  >>etc.).  In the end, I had to pay all of my share of taxes 
  >>on those bonuses
  >>at the end of the year. If you don't plan ahead for that, 
  >>it can be a big
  >>problem! Make sure, too, that you won't be stuck paying the 
  >>employer share. 


^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

Planning to attend IPCC 01, October 24-27 in Santa Fe?  Sign up by
October 3 and get a substantial discount!  Program information, 
online registration, and more on http://ieeepcs.org/2001/

+++  Miramo -- Database/XML publishing automation.  See us at  +++
  +++  Seybold SFO, Sept. 25-27, in the Adobe Partners Pavilion  +++
  +++ More info: http://www.axialinfo.com  http://www.miramo.com +++

---
You are currently subscribed to techwr-l as: archive -at- raycomm -dot- com
To unsubscribe send a blank email to leave-techwr-l-obscured -at- lists -dot- raycomm -dot- com
Send administrative questions to ejray -at- raycomm -dot- com -dot-  Visit 
http://www.raycomm.com/techwhirl/ for more resources and info.