Bonus, income, salary

[Marcos]

Hi All, this is a very interesting topic. Here is a question, all comments and opinions are welcome.

What happens when you get "BONUS" at work? For instances, i'm paying CS based on 'X' amount (arguable my salary). I receive x-mass bonus, which would "presumable" affect my over all Income. Does this mean that i have to pay adjust CS to now include the BONUS amount?

The x-mass bonus was payed out in January of the new year, the base salary between 2012 and 2013 is the same and will not change, but the BONUS increases the "income". Bonus are not guaranteed and highly variable.

 

[DowntroddenDad]

What my separation did was use three years of income and average it out. Tried to negotiate something different but it got too convuluted complicated.

What I tried to negotiate was an annual split of the bonus based on a formula.

Good luck

 

[red6419]

Hi All, this is a very interesting topic. Here is a question, all comments and opinions are welcome.

What happens when you get "BONUS" at work? For instances, i'm paying CS based on 'X' amount (arguable my salary). I receive x-mass bonus, which would "presumable" affect my over all Income. Does this mean that i have to pay adjust CS to now include the BONUS amount?

The x-mass bonus was payed out in January of the new year, the base salary between 2012 and 2013 is the same and will not change, but the BONUS increases the "income". Bonus are not guaranteed and highly variable.

2 ways to handle it -

#1 it becomes part of income reported for the year 2013 and will effect CS payments for 2014,

or

#2 if bonuses are not standard or not a standard amount then you can do a rolling average of your income for the last three tax years (2011 income +2012 income +2013 income)/3=average three year income. For 2015 CS amount you drop off 2011 income and add 2014 using the same calculation.

 

[Canadaguy]

A bonus gets added to your income on line 150 of your return. So if your salary is $100,000 and you get a $20,000 bonus, it is the same as saying your salary is $120,000. You will pay CS based on your salary, which is for example $120,000.

Instead of taking a bonus, you can have your employer pay your expenses instead. So instead of getting an annual bonus of say $5,000, you could ask for a company credit card and expense your lunch or meals as a business expense. Or you could also get a company car and insurance and repairs and fuel would be paid by the company instead of getting a bonus and then paying for your own car.

You could also have your company pay a larger amount to your pension or RRSP contribution instead of paying the bonus to you.

Just some different ways of doing ones fiances.

 

[HammerDad]

A bonus gets added to your income on line 150 of your return. So if your salary is $100,000 and you get a $20,000 bonus, it is the same as saying your salary is $120,000. You will pay CS based on your salary, which is for example $120,000.

Instead of taking a bonus, you can have your employer pay your expenses instead. So instead of getting an annual bonus of say $5,000, you could ask for a company credit card and expense your lunch or meals as a business expense. Or you could also get a company car and insurance and repairs and fuel would be paid by the company instead of getting a bonus and then paying for your own car.

You could also have your company pay a larger amount to your pension or RRSP contribution instead of paying the bonus to you.

Just some different ways of doing ones fiances.

The above are likely taxable benefits and would also likely be included as part of ones salary and income for c/s.

 

[Marcos]

The above are likely taxable benefits and would also likely be included as part of ones salary and income for c/s.

They'll try to get you one way or another. What do you think about this? If i now take out RRSPs, they will get added to total income line 150, does that now mean i have pay CS to include the RRSP amounts? -- That to me would be ridiculous.

 

[Marcos]

A bonus gets added to your income on line 150 of your return. So if your salary is $100,000 and you get a $20,000 bonus, it is the same as saying your salary is $120,000. You will pay CS based on your salary, which is for example $120,000.

True, but as another poster mentioned at is the case with me, the bonus is not guaranteed and the figure is not fixed, so a rolling average would be fair. But then again this isn't a fair game.