Accounting, Payroll & Pension Issues/bouns

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Question
Are bonuses subject to the same deductions as your payroll? ie: medical,dental,vision,401k

Answer
Medical, Dental, Vision, 401K are not bonus's they are benefits. The amounts paid for medical can be either pretaxed or after taxed depending on the companies's benefit plan. If they are before tax than you are taking the tax benefit and you will not pay taxes on them throughout the year. If they are after tax than you pay tax on the amounts throughout the year and you would have to deduct them from your income taxes when you file. It is better if they are pretaxed such as a cafeteria plan you pay no taxes on them.

401k contributions are generally not taxed for federal and State but you do have to pay medicare and fica tax on them.

Shirley

Accounting, Payroll & Pension Issues

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Shirley McAllister, CPP, PHR

Expertise

I can answer payroll questions, payroll tax questions, 401K questions. No stock option questions please and I have some knowledge of other pensions but am most familiar with the 401K pension. I can answer U.S.and Canada payroll questions proficiently and have a good general knowledge of UK and South Africa and some knowledge of Australia and New Zealand Payroll procedures. Please do not ask me homework questions I do not have time to answer them.

Experience

25 years with an international company in the Human Resources, Payroll and Payroll Tax areas.

Organizations
SHRM, APA, I.O.M.A.

Publications
I.O.M.A. and BNA

Education/Credentials
P.H.R., C.P.P., Canadian Payroll Administrator, Successfully passed APA class on UK Payroll Administration. Boise State University Human Resource Certification

Awards and Honors
APA Hotline Citation of Merit for last 8 years.

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