Bonuses and trad 401k and supplemental income tax

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TOJ
Posts: 365
Joined: Wed Mar 02, 2016 9:19 pm

Bonuses and trad 401k and supplemental income tax

Post by TOJ » Tue Feb 27, 2018 3:29 pm

My employer did not exclude the pre-tax 401k contribution from my bonus before it was taxed. They did this last year too. Is this correct? Fictional numbers below:

Bonus = $1,000
Pre-tax 401k = 5%
FICA = 7.65%
Supplemental income tax = 22%

What I got:
$1,000 - 50 - 76.5 - 220 = $653.50

What I was expecting:
$1,000 - 50 - 76.5 - 209 = $664.50

Obviously it all comes out in the wash when I do my taxes. But the real bonus and 401k withholdings are larger and so the difference between the two calculations is not quite as insignificant. I decided to ask here since my company's payroll department is not infallible.

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FiveK
Posts: 8080
Joined: Sun Mar 16, 2014 2:43 pm

Re: Bonuses and trad 401k and supplemental income tax

Post by FiveK » Tue Feb 27, 2018 4:34 pm

Bonus = $1,000
Pre-tax 401k = 5%
FICA = 7.65%
Supplemental income tax = 22%

What you should get:
$1,000 - 50 - 76.5 - 22%*(1000-50) = $664.5, just as you expected.

Call 'em.

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