Finance

Where’s the rest? Why your year-end bonus or gift may have shrunk

Published

4 weeks ago

December 28, 2025

Where’s the rest? Why your year-end bonus or gift may have shrunk

Americans who are receiving a year-end bonus for a job well done may be sorely disappointed when they open their envelope to find a big chunk missing.

Up to a third of a cash bonus can get swallowed up by the IRS’ special tax withholding on cash bonuses, or what it calls “supplemental income,” on top of Medicare, Social Security and state taxes. The federal flat rate for bonus pay is 22% for supplemental income under $1 million. Add Social Security (6.2%), Medicare (1.45%), and state taxes, and total withholding is roughly 30%-35%.

“That 22% federal withholding might be higher than your…regular tax bracket,” according to workforce management software company Homebase. “If they usually pay 12%, seeing 22% disappear from their bonus stings.”

Why can this spell financial disaster for Americans?

For the holidays, many Americans may have spent like they were receiving the full amount of the bonus instead of the bonus amount minus taxes, said Kevin Knull, chief executive of TaxStatus, which provides IRS data to financial advisers.

The $10,000 bonus for air traffic controllers who had perfect attendance during the government shutdown isn’t really a $10,000 bonus, for instance. The withholding on bonuses is a flat 22%, plus a 6.2% Social Security tax and 1.45% Medicare tax. Those reduce the bonus to just over $7,000, and you may still have to have state income tax taken out.

“That’s all immediately deducted and goes to Uncle Sam,” Knull said. “Somewhere around 48% of the population underestimate what they pay in taxes. Income taxes take a big bite out of paychecks.” If you spent the entire ‘$10,000 bonus,’ you overspent by about $3,000.

Separately, Americans should be aware that a bonus can also bump them into the next higher tax bracket if they’re already close to it, experts said.

Some (belated) good news?

If the tax cost of your bonus is less than 22%, or the withholding rate, you’ll receive a tax refund for the difference, or it will be applied to the tax due on any other income, experts said. Bonuses will be taxed as regular income on the final tax return. You’ll just have to wait until you file your 2025 taxes next year to get the money back.

On the flipside, if the tax cost of your bonus is more than the 22% withholding rate, you’ll owe the difference between what was withheld and your total tax cost.

How can you keep taxes low with your bonus?

If you haven’t maximized your 401(k) or IRA contributions for the year, consider adding some of the money to your retirement fund to reduce overall taxable income come tax season, wrote Kay Bell at financial products comparison site Bankrate. Contrbutions are income tax-free, but withdrawals later are taxed.

The 2025 IRA contribution limit is $7,000, or $8,000 if you’re age 50 or older. The 401(k) limit is $23,500 and an additional $7,500 for age 50 or older except those who are age 60 to 63. Those individuals have a higher catch-up contribution limit of $11,250 instead of $7,500.

Or if you expect your income to be much lower next year, pushing your tax bracket lower, consider asking your employer to defer the bonus until then, she said. You’ll still owe taxes, but you could save money by paying at a lower tax rate.

“However, even if your tax bracket doesn’t change year to year, some like receiving bonuses next year just to move the tax liability to 2026,” said Richard Pon, certified public accountant in San Francisco.

What about non-cash bonuses or gifts?

“Employers and employees may be shocked that gifts are usually taxable,” Pon said.

Cash and cash-equivalent gifts and bonuses such as gift cards, season tickets to sporting or theatrical events and gift certificates are taxed, Pon said.

“Sometimes employers deduct this from the regular paycheck,” he said. “Other times, employers pay these taxes on your behalf and gross up the income, which can double the cost of a $25 gift card to $50 with taxes if an employer pays the employee share of taxes…you should check your paystub to see if you are taxed.”

A couple of exceptions exist. The first is the “conduit gift,” which is a contribution made to an intermediary organization that then passes the funds to the final intended recipient. For example, if the parent teacher association (PTA) collected and gifted cash or gift cards to staff and faculty, those are conduit gifts and wouldn’t be taxed. The PTA was merely a conduit for gifts paid by parents.

Another exception is if a manager personally gives an employee a cash gift or gift card, Pon said. “That is a personal gift. It’s not a gift from your employer,” he said. Since the manager is “not the employer, those would be tax-free gifts to the recipients.”

He warned though those gifts may cause other frictions at work. “There are a lot of scrooges,” Pon said. “I once worked in an accounting firm and the managing partner complained I was giving gift cards and candy to our admin staff as a token of appreciation of helping me all year. The partner said I was making other managers seem unkind if they didn’t give out gifts.”

Noncash gifts like hams, turkeys, an occasional ticket to a sporting event or theatrical event are considered a “de minimis fringe benefit,” which is not taxable, Pon said. But note, a coupon or gift card intended to buy a turkey, ham or other item may be taxable, he said.

Medora Lee is a money, markets and personal finance reporter at USA TODAY. You can reach her at mjlee@usatoday.com and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday morning.

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Finance

Poole College of Management Launches Free Financial Literacy Program

Published

11 hours ago

January 21, 2026

Press Room

Poole College of Management Launches Free Financial Literacy Program

The Poole College of Management is launching a Financial Literacy Program for adults. The program is free and open to the public, regardless of your connection to NC State University.

Srini Krishnamurthy, program co-founder and associate professor of finance at Poole, says the goal of the program is “to equip participants with the knowledge and confidence to address financial decisions they face in everyday life, such as understanding interest rates and inflation, performing loan and mortgage calculations, budgeting, saving, investing through mutual funds, and planning for retirement.”

The curriculum is based on the most up-to-date financial research available, translated by professors into easy-to-understand practices and tools for use by anyone.

Real Research Impact

The idea for the Financial Literacy Program took root in 2022 during Krishnamurthy’s participation in an NC State faculty initiative called Strengthening the Impact of Research (STIR). “The program’s goal was to help faculty translate their research expertise into meaningful benefits for the broader community,” he says. “As part of the program, each participant was required to develop and present an idea with real-world impact.”

Around this time, college affordability was a hot topic. It was an issue that hit home for Krishnamurthy — several years earlier, when his daughter was applying to colleges, the two discussed what offers cost in practical terms.

“I built a spreadsheet that incorporated tuition, scholarships, and long-term implications, and walked her through the numbers. Equipped with this information, she confidently chose to attend NC State for computer science and graduated with very little college debt. That experience made clear to me how transformative basic financial knowledge can be, and how rarely it is accessible in a clear, practical form.”

Financial Literacy for All

Knowing that not every family had the knowledge or skillset to evaluate finance – after all, not every college-bound high school student is lucky enough to have parents with terminal degrees in finance – Krishnamurthy teamed up with another faculty member in the STIR program to address that.

They developed a successful financial literacy program for college students and delivered it through the Wake County Library systems and a Wake County Public School System high school. When the opportunity arose to start a similar program at Poole aimed at adults, Krishnamurthy said he was “eager to expand this effort.”

Classes are taught by current Poole professors, including Krishnamurthy, Umut Dur and Denis Pelletier. Topics include (but are not limited to) budgeting, investing basics, time value, loans, credit and retirement planning. Data from participants shows that comfort with major financial decisions increased by 45% by the end of the program, and objective understanding of investments and fees increased by 20%

The first set of classes are on Jan. 26th and 28th. Register using this Google Form.

Finance

Ken Ofori-Atta: Ex-Ghana finance minister US case adjourned, e go remain for ICE detention till April – BBC News Pidgin

Published

23 hours ago

January 21, 2026

Press Room

Ken Ofori-Atta: Ex-Ghana finance minister US case adjourned, e go remain for ICE detention till April – BBC News Pidgin

Wia dis foto come from, GHANA FINANCE MINISTRY

Wetin we call dis foto, Di immigration judge order members of di public wey join di virtual hearing to leave as lawyers for di ex-minister request private hearing

one hour wey don pass

Read am in 7 mins

One US judge for di Annadale immigration court for Virginia adjourn hearing of di immigration case against ex-Ghana finance minister Ken Ofori-Atta, who dey face corrupting charges back home.

Di judge David Gardey move di hearing to 27 April.

Dis be in connection wit immigration wahala afta US Immigration and Customs Enforcement (ICE) arrest and detain di ex-finance minister for Virginia since 6 January 2025, sake of e overstay im visa.

Tori be say US authorities revoke di ex-minister visa for November 2025 wey he refuse to comot di kontri.

During di first appearance bifor di court on 20 January, lawyers for di ex-finance minister ask di court for private hearing.

By dis time many pipo join di virtual hearing sake of Ghanaians dey interested in di mata.

Two cases dey bifor di court – one of dem be bond application; wey mean say lawyers for di minister apply for di release of dia client from ICE custody wey di oda one be di immigration case proper.

How di minister appear for di court hearing

Dis be di first time since January 2025 wey di ex-minister dey appear for public afta e comot Ghana to di US for “medical attention.”

Di ex-Ghana minster appear for di Caroline detention centre as e dey wear one grey jacket, wey he wear black detention coverall.

He also dey wear blue face mask – di common one wey pipo wear during di covid 19 pandemic.

As e waka enter di isolated room, e comot di jacket, leaving im dark detention outfit.

E carry di jacket hang for chair behind a table for di centre of di empty room, wey e sidon.

Di minister also wear one armband for his wrist.

Few minutes later, Ken Ofori-Atta comot di chair wey e comot di lonely detention room briefly, bifor e return when di judge call im case.

As e return, e move im glasses wey e hang am on top his head wey e sidon for di chair dey face di camera.

As di judge call di case, lawyers for di minister, Christopher Chaisson and Kwao Amagashie tok say dem wan make di judge hear di case for private.

next hearing information — Wetin we call dis foto, ICE arrest di ex-finance minister on 6 Janaury 2026 wey dem keep am for di Caroline Detention centre until his first court appearance

Wetin happun during di virtual hearing as judge ‘ban’ di public

Judge David Gardey: Dis be di bond determination hearing for di mata wey involve Kenneth Ofori-Atta. Dem detain am for di Caroline detention centre wey he dey appear by Webex (virtual conference). Make di lawyers wey dey represent am enta dia appearance.

Lawyers: I be Christopher Chaisson, I dey on behalf of Enayat Qasimi and Kwao Amagashie on behalf of di respondent.

Judge David Gardey: Sake of di nature of di issues wey we discuss for di bond hearing, you pipo want di bond hearing to be private, as in make e dey closed to di public?

Christopher Chaisson: Yes, your honour. I make happy say you raise dis mata serf. I wan raise am bifor.

Judge David Gardey: Okay. I hear am.

Christopher Chaisson: For di record, your honour. Di oda issue also dey – di master calendar hearing. Wit di way di mata dey, some of di issues we go raise for di hearing be sensitive.

Judge David Gardey: You dey ask say di master calendar hearing also go dey private; closed to di public?

Christopher Chaisson: Yes. We wan clarify sometin small. We go like say make di two hearings all dey closed to di public.

However, for di bond hearing case, we go ask di court say make dem try anytin dem fit do for dia power, to finish di case [today]. I go wait for di court decision.

Judge David Gardey: I understand. So all di pipo wey join us for di Webex (online video conference), we go hear di mata in private under di US immigration law. Di law say if any party for di immigration case say make di hearing dey private and closed to di public, under di circumstances, di court go close di hearing.

If anyone dey for di Webex (online video platform) wey dey here to view dis hearing; either di bond hearing or di master calendar hearing, make everyone comot now sake of we neva go continue if pipo still dey on di online link. Only di parties for di case dey allowed to be present during di hearing.

Dat be how dem comot hundreds of Ghanaians wey join di virtual link to follow di proceedings for di hearing to continue.

Wetin go happun now

Afta dem arrest Ken Ofori-Atta for di US, his Ghana lawyers tok say “Oga Ofori-Atta get pending petition for adjustment of status wey go allow pesin to stay for di US legally past di period of validity of dia visa,” di statement by Justice Kusi-Minkah Premo explain.

“Oga Ken Ofori-Atta be law-abiding pesin wey he dey fully cooperate wit ICE to deal wit dis mata,” di statement from his lawyers add.

Now as di Annadale immigration court judge adjourn di case to 27 April, di ex-finance minister go likely remain in detention until di next hearing (for three months).

Sabi pipo explain say if di ex-minister lawyers succeed wit di bond application, den dia client go dey out of di ICE custody wey he go dey attend di substantive immigration hearing.

If dem no succeed or di judge no gree wit dia argument, di detainee go dey inside ICE custody until dia deportation case dey finalized.

Di judge gat di discretion to determine weda pesin be flight risk or di pesin be danger for di community

If pesin dey inside custody during di hearing, di case go fit move fast fast.

For all dis, di detainee get option to appeal if di judge deny dem di bond.

Dem fit appeal to di board of immigration appeals (BIA); but dis process neva dey easy.

a protester with placards during the protest — Wetin we call dis foto, Pressure group Arise Ghana gather for di US embassy for Accra to protest to demand cooperation of US authorities make dem extradite di ex-finance minister to face accountability

Why Ghana dey pursue di ex-finance minister

Attorney general for Ghana Dr Dominic Ayine, file extradition request to US authorities for di ex-finance minister.

Dem wan make US authorities carry di minister and his chief of staff wen e be minister, to Ghana make dem face accountability for di time as minister for seven years from 2017 to 2024.

“At dis point, na di US authorities especially di judicial authorities wey go determine whether sufficient evidence dey wey go demand say make di two accused pipo, dey extradited to Ghana to stand trial,” id attorney general explain.

Di kontris special prosecutor’s office already slap di ex-minister and odas wit 78 counts of corruption and related offenses.

According to di special prosecutor Kissi Agyebeng, di ex-minister and oda accused pipo allegedly conspire to set up “criminal enterprise wey directly and indirectly influence di kontri procurement process to win contracts for di company (SML).”

“Di SML company carry unfair advantage to get transaction audit services, external price verification services, measurement audit for downstream petroleum products and odas form di Ghana govment through di finance ministry and di Ghana revenue authority.”

Kissi Agyebeng di special prosecutor tok say “dem begin di criminal enterprise for 2017 by di ex-finance minister Ken Ofori-Atta, Emmanuel Kofi Nti (ex-GRA commissioner) and Evans Adusei togeda wit di SML company itself.”

Di prosecutor say dem neva ensure value for money for di contracts dem carry give di SML company wey dem cause financial loss of Ghc 1.4bn ($128m).

Dis be some of di reasons why di kontri dey pursue di ex-minister; oda investigative agencies also dey find di minister to help dem investigate oda cases wey im allegedly dey involved.

Ken Ofori-Atta comot Ghana after his govment lose di 2024 elections wey he say he dey go for medical check-up and surgery – since dat time, he neva return.

Many pipo and political watches say di ex-minister dey run away from accountability and trial – but his lawyers say di minister gat nothing to hide.

Di govment thru di Attorney general and odas say dem go work to ensure say US authorities extradite di ex-minister to Ghana to face di law.

But dem also say dem go welcome any move wey go make di minister return to Ghana faster than di extradition – if ICE fit deport am, dem go happy say he go at least return to Ghana and face accountability like anybody else.

Pipo wey dey close to di ex-minister say tins no go be easy sake of di Ken Ofori-Atta apart from di US visa, also get Canada and UK visa, wia he fit go, but time no tell.

For now di ex-minster dey remain for custody for di Caroline Detention centre for Virginia, until sometin happun.

At di time di immigration hearing dey happun, one pressure group for Ghana and oda Ghanaians gada for di US embassy for Accra to protest.

Dem carry placards wey dem wear red shirts and armbands wey dem demand say make di embassy authorities work to bring di ex-finance minister back to di kontri to face trial.

Finance

BOK Financial Q4 Earnings Call Highlights

Published

1 day ago

January 20, 2026

Press Room

BOK Financial Q4 Earnings Call Highlights

BOK Financial (NASDAQ:BOKF) reported fourth-quarter earnings of $177.3 million, or $2.89 per diluted share, and full-year 2025 earnings of $578 million, or $9.17 per diluted share, which management said marked record earnings per share for both the quarter and the year. Executives emphasized broad-b