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Fri Nov 30, 2012, 01:21 PM

Chrysler factory workers to receive $1,750 bonus checks

Source: Detroit News

November 30, 2012 at 11:20 am
Chrysler factory workers to receive $1,750 bonus checks
By Bryce G. Hoffman
The Detroit News


Chrysler Group LLC's 26,000 U.S. factory workers will be receiving $1,750 bonus checks on Dec. 21 the second half of their bonus for signing the contract between the company and the United Auto Workers in 2011.

While workers at General Motors Co. and Ford Motor Co. received their full signing bonuses up front, Chrysler workers only received half of their $3,500 last year. The rest was payable when the company, which went bankrupt in 2009, achieved "sustained profitability" for four consecutive quarters.

The $381 million third-quarter profit that Chrysler reported in October represented the third straight quarter of profits for the company. Fourth quarter results are not due out until January. But Chrysler said Friday it is waiving the requirement and paying the bonuses now.

"This waiver of the four-quarter requirement is made in recognition of the tremendous contribution you have all made to the performance of our facilities and to the revival of Chrysler," CEO Sergio Marchionne said in a message to workers Friday morning. "You have also demonstrated a great level of commitment and cooperation in building a solid future for our company."



Read more: http://www.detroitnews.com/article/20121130/AUTO0101/211300425#ixzz2DjP88cFB

14 replies, 3693 views

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Reply Chrysler factory workers to receive $1,750 bonus checks (Original post)
Bozita Nov 2012 OP
closeupready Nov 2012 #1
rhett o rick Nov 2012 #11
closeupready Dec 2012 #14
msongs Nov 2012 #2
closeupready Nov 2012 #3
LiberalFighter Nov 2012 #5
Indykatie Nov 2012 #7
Randomthought Nov 2012 #9
LiberalFighter Dec 2012 #13
LiberalFighter Nov 2012 #6
sarcasmo Nov 2012 #4
ProfessorGAC Nov 2012 #8
JNelson6563 Nov 2012 #10
Iggy Nov 2012 #12

Response to Bozita (Original post)

Fri Nov 30, 2012, 01:24 PM

1. Wow, nice.

K&R

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Response to closeupready (Reply #1)

Fri Nov 30, 2012, 06:35 PM

11. Wow Yeah. That's about 85 cents an hour. nm

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Response to rhett o rick (Reply #11)

Sat Dec 1, 2012, 12:25 PM

14. If take-home is $1,200, that's a flat-screen TV and a nice bike.

Which, in turn, feeds appliance retailers and workers.

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Response to Bozita (Original post)

Fri Nov 30, 2012, 01:28 PM

2. are bonuses still taxed at the 50% rate (You only get half)? nt

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Response to msongs (Reply #2)

Fri Nov 30, 2012, 01:32 PM

3. I believe it's taxed on an annual income rate - that is,

say that Chrysler workers are paid 26 times per year. Multiply that $1,750 by 26, and you get $45,500. The income withholding tax rate that applies would be that which would apply to a paycheck for someone earning an annual salary of $45,500. Someone who is an accountant can confirm whether or not that's correct, but I believe this is how withholding is calculated.

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Response to msongs (Reply #2)

Fri Nov 30, 2012, 02:08 PM

5. 35% is the highest tax rate

There is a $73.08 withholding allowance per exemption that is deducted from the wages before taxes are determined. A single worker would have a maximum of $1676.92 of taxable income putting them at the 25% tax bracket.

Their maximum tax would be:
(Zero $00.00 tax on amount below $41
(10%) $ 16.80 tax on amount over $41 - and below $209
(15%) $ 76.80 tax on amount over $209 - and below $721
(25%) $238.98 tax on amount over $721 - and below $1,688
Total tax -- $332.58 (If math is right)

A married worker would have a maximum of $1603.84 of taxable income putting them at the 25% tax bracket.

Their maximum tax would be:
(Zero $00.00 tax on amount below $156
(10%) $ 33.40 tax on amount over $156 - and below $490
(15%) $ 153.75 tax on amount over $490 - and below $1515
(25%) $ 22.21 tax on amount over $1515 - and below $2900
Total tax -- $209.36 (If math is right)


SOURCE USED: IRS 2012 Publication 15

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Response to LiberalFighter (Reply #5)

Fri Nov 30, 2012, 02:33 PM

7. Companies Typically Tax Bonus and Other Special Payments at 28% And Not the Table Shown in Your Post

A signing bonus would fall into this category of payments. The company I worked for used the 28% tax rate for our Union signing bonuses but gave members an opportunity to direct some or all of the payment to a tax free account such as their 401K or their HSA.

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Response to Indykatie (Reply #7)

Fri Nov 30, 2012, 04:11 PM

9. bonus taxed at gift tax rate

at the time they are distributed but are reported as income on W-2 so any excess is refunded when taxes are filed. At least that's how bonus checks work at the company where I work

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Response to Indykatie (Reply #7)

Sat Dec 1, 2012, 11:07 AM

13. If it is supplemental wage as defined by Pub 15

It is taxed at 25% or it can be paid normally if combined either with current week wages or prior payroll period.

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Response to msongs (Reply #2)

Fri Nov 30, 2012, 02:12 PM

6. 2 things to clear up...

1) There is no 50% tax rate.
2) There is not a flat tax rate on income unless the person doesn't have enough income to tax.

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Response to Bozita (Original post)

Fri Nov 30, 2012, 01:59 PM

4. Right on. Any statement form Romney on the bonus?

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Response to Bozita (Original post)

Fri Nov 30, 2012, 02:40 PM

8. Translation: The Fourth Quarter In A Row Of Profitability Is In The Bag

I don't mean that to be as cynical as it sounds. The company is doing the right thing, but i doubt they are really waiving the requirement. Just paying the bonus at Christmas time because they know Q4 is going to be profitable.

Still pretty cool.
GAC

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Response to Bozita (Original post)

Fri Nov 30, 2012, 06:09 PM

10. Great news!

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Response to Bozita (Original post)

Fri Nov 30, 2012, 06:58 PM

12. BEENGO!!!

 

want workers to CARE? to be more motivated?

then yes, profit sharing via BONUSES is a very smart thing.

It started when Henry Ford was smart enough to know to pay his workers MORE... so they could at least afford to purchase the cars they were making.

it's not rocket science, folks.



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