Regarding retro pay and retro bonus
Our union told us we would all get $1800 retro bonus not the over 5k they owed us. So ok we took it but our company taxed the shit out of it! California stock option bonus IT/ and supplemental federal tax.
So out of the $1800 I only received $1064.16
They took out $735.84.
The other company gave the employees their check with just regular taxes taken out (they received 1400 to 1600 depending on their deduction rates)
My question is the boss said that this is the way bonuses are taxed. I said it is not a bonus it is a retro blow job of $1800 so you don’t have to pay me the over $5k you owe me in back pay. My question is can they tax it that way legally in California? And I know it’s just advice your not a attorney yada yada yada. But should I go find one? The union is “looking into it” but that will never happen it’s not their money getting taken away. And how the hell do I deduct stock option tax if I didn’t get any stocks??
You are correct when you suggest that we are not licensed attorneys nor tax advisors. However, retro pay and retro bonuses would be taxed like any other normal income, subject to all federal, state and local taxes, unless somewhere in the union contract it states the bonus would be grossed up (meaning you’d get the full bonus amount and your employer would pay the taxes). In most states, union contracts supersede standard practices of the state (as long as they abide by them). Therefore, the only person likely to be able to understand and dive into the details behind your concern would be a union rep or a labor law attorney. They’d need a copy of your union contract and employment agreement, and then they could advise you as to whether you may have a case against your employer.
California labor law sites like this one should be able to provide additional information: https://www.dir.ca.gov/dlse/faqs-noticetoemployee.html