Skip to main content
March 29, 2021
Question

Does annual increases count as a raise?

  • March 29, 2021
  • 1 reply
  • 0 views
how is raise/bonus defined

1 reply

Carl11_2
Employee
March 29, 2021

Why are you asking this question? I don't see where this is relevant to taxes. Can you clarify a bit more?

March 29, 2021

They asked if I got a raise or a bonus. So I wonder if annual increases count as a raise? Probably not?

Carl11_2
Employee
March 29, 2021

I don't see why it would matter one way or the other really. But what you can do is answer it both ways (one way at a time of course) and see what, if anything, changes. As for an "annual increase", that would not be a bonus. If it had to be labeled anything, that would be a raise.

In general, an "annual increase" increases the income of all employees. Whereas a bonus is only paid to certain employees.

Generally, raises are included in box 1 of the W-2. For a bonus, it may or may not be included in box 1. When it's not, I've at times seen a bonus reported separately on a 1099-MISC. In some situations (which I'm not that privy on) a bonus may be taxed differently than "regular" pay.