Another Extra Check
Posted Under: Debt Tales
Today, I received a $100 check from the company I work for. Well, it was actually $61.40 after they took all the taxes out of it.
This check was a reward for one year of service without having an accident. It’s not that difficult for me to work without an accident, since I have an office job, but everyone in the company gets them. We used to get gift cards for $100, but a couple years ago they said that the award was part of our compensation and must be taxed, so they couldn’t give the gift cards anymore.
I deposited the money in the bank as soon as I got off work and when I got home I went online and submitted a $61.40 payment to the account on top of my debt snowball.
I’ve read articles that refer to paying any extra money you receive toward your debt snowball as “snowflaking”. That’d be appropriate for me since we’ve been dealing with an ice storm for the last couple days. Whatever you want to call it, I think it’s a good idea. I figured it was best to make the payment as soon as I got the money- before I thought of something else to spend it on.
Reader Comments
I can’t believe they take almost 40%! that’s crazy… hopefully you get some of it back on your tax return, keep paying the debt!!
HS
Crazy… I agree! I think they take out 28% for federal tax from anything considered a bonus. Then they take out the state taxes, etc.
I’ve been waiting on another update from you! Where’d you go?
(On that note I need to update. Probably will later today in the evening.)
Just one more update: I found my pay stub from this check and it was 25% Federal Tax, 6% State Tax and the rest of the withholding went to FICA.