Team lead bonus

Looking at my payslip, I have Perimeter Checks and Overtime listed from 2019?! Anyone else see a bunch of weird shit on their slips for this upcoming paycheck?
 
PogDog said:
Looking at my payslip, I have Perimeter Checks and Overtime listed from 2019?! Anyone else see a bunch of weird shit on their slips for this upcoming paycheck?
Click to expand...
I had something odd with OT. Glad it's not just me. I stared at it for a while before I think I figured it out.

On a couple lines, it looks like they took away OT from me. I worked OT and got paid for it, but I'm paying it back on this next check. The pay rate for these instances is negative $8.50 (which is half of my $17.00 normal rate). One example is that in one week in August, I worked 2.13 hours of OT, and Target is taking back $18.11. It's worth noting that I keep the normal pay for those hours, which is $17.00 x 2.13. They're only taking back the extra money that OT gets you. I keep the "time" and they take back the "and a half".

But wait! The next part is very interesting, and confusing. It shows the same week in August and lists the OT at 2.13 hours, but the rate is different. Instead of $8.50, it's $8.62. Target is paying me $18.37.

Adding them together, Target took back $18.11 and then gave me $18.37, so I gained $.26.

I have no clue why this happened, but I wanted to explain it so people don't freak out about Target taking their OT away - they actually gave me more money. It's not much, and it doesn't make sense, but the point of my post is that I'm not losing money over it.
 
Xanatos said:
I had something odd with OT. Glad it's not just me. I stared at it for a while before I think I figured it out.

On a couple lines, it looks like they took away OT from me. I worked OT and got paid for it, but I'm paying it back on this next check. The pay rate for these instances is negative $8.50 (which is half of my $17.00 normal rate). One example is that in one week in August, I worked 2.13 hours of OT, and Target is taking back $18.11. It's worth noting that I keep the normal pay for those hours, which is $17.00 x 2.13. They're only taking back the extra money that OT gets you. I keep the "time" and they take back the "and a half".

But wait! The next part is very interesting, and confusing. It shows the same week in August and lists the OT at 2.13 hours, but the rate is different. Instead of $8.50, it's $8.62. Target is paying me $18.37.

Adding them together, Target took back $18.11 and then gave me $18.37, so I gained $.26.

I have no clue why this happened, but I wanted to explain it so people don't freak out about Target taking their OT away - they actually gave me more money. It's not much, and it doesn't make sense, but the point of my post is that I'm not losing money over it.
Click to expand...

I noticed a similar thing, and I noticed that my tax rate increased slightly too. Like by about 3%. So, sure it seems like there is an increase in that redistributed payment, whatever is happening, but more is being taken out with the higher tax rate.

So they might be giving you 1% more there, but they're taking 3% back. Which then makes me wonder if I'm being double taxed some how?

Any accountants or CPAs here?
 
PogDog said:
I noticed a similar thing, and I noticed that my tax rate increased slightly too. Like by about 3%. So, sure it seems like there is an increase in that redistributed payment, whatever is happening, but more is being taken out with the higher tax rate.

So they might be giving you 1% more there, but they're taking 3% back. Which then makes me wonder if I'm being double taxed some how?

Any accountants or CPAs here?
Click to expand...
I assume you're a TL, which means you got your bonus on this check. The entire check is much higher than a normal check, which means there is going to be a higher tax rate.
 
Xanatos said:
I assume you're a TL, which means you got your bonus on this check. The entire check is much higher than a normal check, which means there is going to be a higher tax rate.
Click to expand...

I am.

I did a little investigating. Using a payslip calculator (Free Payroll and HR Resources and Tools - https://gusto.com/tools) to figure out where the change was. Used my home state to clarify state/local taxes. It was a little finicky, but I figured out what went where and got consistent results for several previous paychecks.

The most notable difference was the Federal Withholding rate. Past paychecks were all 8.24%. It's also what Gusto puts in by default. However, this paycheck had 9.65% withheld. A 1.41% increase.

And to make sure it wasn't an increase because of my higher gross pay, I found a payslip from Q4 that was nearly identical in gross pay (only $20 less actually). That federal withholding rate was still 8.24%. My take home pay after taxes/deductions was still nearly $60 more than this coming paycheck.
 
Before I go full conspiracy theorist.

I think I should try contacting someone in payroll that can clarify. Because this paycheck has the bonus, vs. an accumulated hourly total... that bonus might be taxed differently. The paycheck doesn't clarify that and that's what's confusing.
 
A quick call to HROC clarified things... Bonuses are being taxed at a different rate (22% for federal and another % depending on your state). That's separate from your hourly income, so only the bonus was taxed at that rate.

And if you saw OT and Perimeter Check changes, that's because the rate they were calculating them at was wrong. They were initially calculated at a lower rate. Seemed minuscule, cause it seemed like a fraction of a percentage, but still they fixed that on this paycheck.
 
If you want to see if your state withholds supplemental wage withholdings here is a list.

Supplemental wage withholding rates

When you process a bonus payroll Gusto will automatically withhold income taxes at the supplemental withholding rate of 22%. The rate changes
support.gusto.com support.gusto.com


This is not an endorsement for Gusto, just finding a lot of good information there.
 
Just clarification. Bonus amounts are withheld at a higher percentage rate not actually taxed at that rate. You pay taxes on overall earnings for the year but the government requires one time payments and supplemental income be withheld at a higher rate. Everything comes out correctly when tax returns are completed the following Spring.
 
TMs are going to be receiving bonuses like TLs as well. It’ll reflect on not this current review, but the next.
 
DatBoi9497 said:
I totally bet that every leader will accurately judge each tm and only the ones that deserve it will get the bonuses and it totally doesn't have a chance of being corrupted...
Click to expand...
Usually in other companies it is based purely on metrics, so you’re SOL if you have a shitty leader but on the plus side you’re all equally SOL.
 

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