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3 Answers

Can my employer take bonus check tax out under “voluntary deductions” on next paycheck?

Asked by: epondel 434 views YA Discussion

My employer forgot to tax my bonus check and instead took the tax amount out of my next paycheck under “voluntary deductions.” All it says under voluntary deductions is “miscellaneous” and the amount reduced from paycheck. I thought voluntary deductions is just for misc. work expenses you have agreed to cover.

How does this affect me for taxes? Will it just show I made less income overall so I will be taxed less or will there be an issue with how it is reported?

3 Answers

  1. mronquillo06 on Oct 28, 2012 Reply

    The correct payroll deductions are allocated to the an employee’s Federal, State, FICA, DI/UNI/FLI etc. Even though your pay stub shows the tax withheld as a ‘miscellaneous’ amount, your W-2 should report gross income, including your bonus and tax withheld is calculated automatically depending on your earnings and dependency exemptions.

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  2. Quick Answers on Oct 28, 2012 Reply

    He was supposed to withhold fica/mc and 25% for federal (state and local too). If he forgot, that’s why it was under the next paycheck’s deductions.

    It will NOT reduce your total income. The tax bill will depend on your total income and whether or not more was withheld than needed to pay the tax.

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  3. tro on Oct 28, 2012 Reply

    due to the negligence of the payroll dept with your bonus check it is either this way or you return the check and let them reissue you a new correct one
    your gross will be the same on your total, the SS and Medicare should coincide with the %’s required to be withheld by year’s end and any income tax withheld at the higher rate could result in a refund to you when you file

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