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| NJT workers get nice checks (319839) | |
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| (319839) | |
NJT workers get nice checks |
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Posted by TransitChuckG on Tue Oct 18 18:31:51 2016 Bonus |
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| (319842) | |
Re: NJT workers get nice checks |
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Posted by Henry R32 #3730 on Tue Oct 18 19:27:20 2016, in response to NJT workers get nice checks, posted by TransitChuckG on Tue Oct 18 18:31:51 2016. Not really a bonus (though certainly a nice check!). These are raises that should have been paid years ago. NJT made out on the deal on 3 fronts:1. Anyone who left the payroll before the payment came never gets paid. So there's some money they never had to spend. 2. The money stayed in NJT's hands rather than the employees, so NJT could theoretically be earning interest and investment income off of it (depending on where they stored what they earmarked for this eventual payout). The employees don't get any interest earned on the difference. |
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| (319843) | |
Re: NJT workers get nice checks |
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Posted by kcram3500 on Tue Oct 18 21:23:06 2016, in response to NJT workers get nice checks, posted by TransitChuckG on Tue Oct 18 18:31:51 2016. Lump sums were a bad idea for anyone receiving over $5000, especially the 318 people who received in excess of $20K. The tax hit they took on that lump sum would have been far less if those payments had been spread.If my employer owed me $20K in retro pay, I'd tell them to spread that out in the percentage-raise that would have been applied until paid or unless I leave before the total is complete, and then lump-sum the balance at that time. |
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| (319859) | |
Re: NJT workers get nice checks |
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Posted by TransitChuckG on Wed Oct 19 05:58:23 2016, in response to Re: NJT workers get nice checks, posted by kcram3500 on Tue Oct 18 21:23:06 2016. You guys are correct, the tax hit for a lump sum is awful! |
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| (319861) | |
Re: NJT workers get nice checks |
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Posted by TerrApin Station on Wed Oct 19 07:50:20 2016, in response to Re: NJT workers get nice checks, posted by TransitChuckG on Wed Oct 19 05:58:23 2016. Why is the tax hit awful? |
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| (319870) | |
Re: NJT workers get nice checks |
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Posted by kcram3500 on Wed Oct 19 12:01:12 2016, in response to Re: NJT workers get nice checks, posted by TerrApin Station on Wed Oct 19 07:50:20 2016. A large lump sum will usually change your tax bracket. Let's say you normally make $75,000... your taxes are deducted based on that rate of pay. Then late in the year, you get a large lump sum of back pay like this. Because it's specifically listed as back pay and not a bonus, the tax deductions are "normal" just for that amount of money, but not for what you have had deducted all year. (Bonuses are taxed differently.) $20K changes your tax bracket, and now you may find yourself owing the IRS and/or state instead of the refund you may have expected. |
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| (319871) | |
Re: NJT workers get nice checks |
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Posted by TerrApin Station on Wed Oct 19 12:19:24 2016, in response to Re: NJT workers get nice checks, posted by kcram3500 on Wed Oct 19 12:01:12 2016. Makes sense. Thanks. |
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| (319872) | |
Re: NJT workers get nice checks |
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Posted by Spider-Pig on Wed Oct 19 13:20:50 2016, in response to NJT workers get nice checks, posted by TransitChuckG on Tue Oct 18 18:31:51 2016. Why are NJT workers getting checks from Nassau Inter-County Express? :-) |
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| (319881) | |
Re: NJT workers get nice checks |
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Posted by TransitChuckG on Wed Oct 19 17:33:51 2016, in response to Re: NJT workers get nice checks, posted by Spider-Pig on Wed Oct 19 13:20:50 2016. Did I ever tell you why I hate acronyms?:):) |
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| (319894) | |
Re: NJT workers get nice checks |
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Posted by NJT Oradell on Thu Oct 20 12:29:45 2016, in response to NJT workers get nice checks, posted by TransitChuckG on Tue Oct 18 18:31:51 2016. These were retro checks. Active and retired union employees who had money coming got checks. I went on disability in September of 2010 and retired in early 2011 and I still got a check that was over $300 gross. As for lump sums, they are taxed differently than pay checks. Lump sums are taxed at 33% so a $1000 gross lump sum winds up being a $667 check. Retro pay checks are taxed according to the employees tax bracket so it's usually a smaller tax hit. There are also tax laws that permit, in some cases, spreading out the tax burden over a number of years so you don't have one year of a lot of income compared to other years. This is why I tell people to never do their own taxes, use an accountant. |
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| (319933) | |
Re: NJT workers get nice checks |
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Posted by TransitChuckG on Fri Oct 21 09:07:36 2016, in response to Re: NJT workers get nice checks, posted by NJT Oradell on Thu Oct 20 12:29:45 2016. Thanks! |
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