Increase wages, not bonuses you cowards. Not every employee, even salaried, gets a bonus. And bonuses are just a one-off “feel good about yourself” payment that does very little to improve the quality of life for the employees.
Are bonuses tax deductable for Target? They probably didn’t give the bonuses out of kindness if that is the case.
Plus bonuses are taxed higher, 50% or more in some places. So a bonus check of $1,000 may end up being negligible.
This is not correct. Bonuses are no different from other wages. What happens is the payroll software sees you get a big check and withholds taxes as if you got that same check every pay day. The actual taxes you owe on the bonus are likely different from the taxes that are withheld.
Regardless of the tax withholding issue, I would absolutely rather a raise than a bonus. Pay me fairly, then give me a tiny holiday bonus if you want a chance to tell the company merry Christmas.
I’m sorry, but you are 100% incorrect.
Source: Bonus check getter for 30+ years.
https://turbotax.intuit.com/tax-tips/jobs-and-career/how-bonuses-are-taxed/amp/L7UjtAZbh
https://www.kiplinger.com/taxes/how-a-bonus-is-taxed
https://www.cnbc.com/2023/12/27/does-the-tax-on-your-year-end-bonus-check-seem-high-heres-why.html
Bonuses are initially taxed higher, but during tax time you get that money back.
I guess you didn’t spend that time reading articles before you link them. They all contradict you by the way. Key point is that “withholding rate” is not the same as “tax rate”.
Bonuses are 100% taxed the same as the rest of your wages.
Mate the cnbc link you sent says they just initially withhold more tax but you will get it back in tax returns. So yea immediate money is lower but in the end it evens up.
It evens out… a year later. That doesn’t change the fact that your $1000 bonus check is $400 to $600.
Open letter to Target salaried employees:
Take that extra bonus (after taxes) and split it evenly between yourself and every single non-salaried person who reports to you. Even if the amount each person gets is small, it is important.
Sounds nice in theory, but keep in mind salaried includes mid level store management that works 50-60 hours/week. Their hourly rate is basically the same as entry level cashiers.
My wife is a top performer in her district and got like $2k it’s not a glamorous C-suite bonus. With 80 reports that’d be $25/person vs a lifeline towards student loans, rent, etc.
That said, she regularly buys things for her team when they go above and beyond, but on company dime. Remember that Corporate Target could easily pay for hourly TM bonuses with “soaring profits” but instead cuts payroll hours to appease shareholders. They’re the enemy, not frontline managers dealing with shitty customers every day.
Sometimes, when the right thing needs to be done, and you are someone who is capable of doing it, you should do it.
It’s not her responsibility to cut her own pay to pay her team. I get your sentiment but your solution feels a little misguided. Target is more than capable of compensating everyone if they’re making record profits but they choose not to.
Starting salary for my wife’s position is $55-60k and she’s one level below store directors that make $100k+. Again, she works 50+ hours not by choice, that’s the minimum set by the company. She’s not the enemy, Target is.
It’s not her responsibility to cut her own pay to pay her team.
Not a cut.
Take that extra bonus (after taxes) and split it evenly between yourself and every single non-salaried person who reports to you.
That’s on the company to provide bonuses, not on other employees. It’s easy to blame other employees. What’s more difficult is to work together and improve things for everyone. So if someone gets a raise or a bonus, don’t try to entitle yourself to that money. Try to ensure everyone gets a bonus or raise.
I didn’t blame anyone, and I’m not on the side of this equation you assume I am.
Bonuses are tied into compensation. With your logic anyone making more than entry level employees should redistribute their paychecks, which doesn’t help anything.
Again, I want to separate C-suite bonuses vs front line manager bonuses. If you’re not an executive your bonus is part of your compensation and nowadays is a way for a corporation to withhold pay if performance KPIs aren’t hit or the company doesn’t do well. It’s not “extra pay”, it’s a contingent part of your salary.
Dude. You’re crossing Wheaton’s law here.
So why haven’t you given all of your possessions to those who have less?
