Ask Cortana anything: Snarky answers to 59 burning questions. If nothing else, Windows 10's Cortana digital assistant proves sheâs more fun than Siri and Google Now put together.
At least 3 million Americans are receiving special tax reform bonuses . Thanks to the Tax Cuts and Jobs Act, at least 270 companies have already announced wage and salary increases, bonuses, or 401(k) match increases, according to a list compiled by Americans for Tax Reform. The list, found at www.atr.org/list is being continuously updated. At least 3 million Americans are receiving special tax reform bonuses. This number does not even include those receiving pay increases or increased 401(k) contributions from their employer due to tax reform. Recent examples include: Mountaire Corporation (Millsboro, Delaware) â $1,000 or $500 bonuses based on length of service and increased 401(k) matches.
FICA Taxes. Bonus income is subject the Federal Insurance Contributions Act, which includes taxes for Social Security and Medicare. Your employer has to subtract Social Security and Medicare tax from bonuses and other wages. The Social Security tax rate is 10.4 percent in 2012: employers pay 6.2 percent and employees pay 4.2 percent. Social security tax applies to the first $110,100 of income you earn, so if you make more than $110,100 in normal wages, your bonuses aren't subject to Social Security tax. Employers and employees each pay a tax rate of 1.45 percent for Medicare; there is no income limit for Medicare taxes.