Nanny Bonus Tax Clarification

Summary

Bonuses are considered supplemental wages and are subject to federal and state taxes. In New York, the federal flat tax rate for supplemental wages is 22%. Unless the contract specifies that the $5000 bonus is after taxes, it is generally understood as a gross amount before tax deductions. Always consult an attorney for personalized advice.

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Does this mean before or after taxes?
Hello ****, could you please clarify what you're referring to when you ask "does this mean before or after taxes?" It will help me provide you with more precise information.
You will be our Full-time temporary nanny, with a guarentee of * Hours a week from Monday May 29th * Until the end of October *. If successful, You will receive a bonus of $* USD at the end of this temporary work arrangement.
Hello ****, I understand you're curious about the tax implications of your bonus. The answer can vary based on your location. Could you please tell me where you are located?
New york
In New York:
- Bonuses are considered supplemental wage and are subject to taxation.
- The flat tax rate for supplemental wages in New York is *% for Federal.
- NY state taxes could also apply, depending on your individual circumstances.
Please consult a tax professional for personalized advice.
Yes i realize bonuses are subject to taxes but the way it is worded in the contract was i supposed to receive * before or after taxes?
In legal terms, unless the contract specifically states that the $* bonus is "after taxes", it is generally understood as a gross amount, before tax deductions. However, always consult an attorney for tailored advice.
Thank you
I'm glad I could help, ****! If you have any other legal questions in the future, don't hesitate to ask. Have a great day!