I have been on workmans comp. Since late 2014. In the beginning of 2015 my company gave us a bonus check they took taxes out of it. What I need to know is do I have to pay taxes on the work comp ============ Needless to say you need to contact the Dept of revenue of Louisiana for more accurate info/advice ; however, Workers? compensation settlements are fully tax-exempt if paid under the Workers? Compensation Act.
and if not do I have to file on the bonus money. I live in the state of Louisiana======ingeneral,.Any wages that are not solely a function of the current pay period are legally considered supplemental wages by IRS, and are legally required to use a different withholding method then normal. Aggregate and Flat Tax. Aggregate means that the employer takes all wages paid (normal plus this vacation payment) and tax them together once using the W-4 instructions and the pay period tax table. Since we use a graduated income tax system, this method tends to yield higher then normal taxes on the supplemental wage payment. The other method is Flat Tax. This is normally 25% unless you have more then one million dollars in supplemental wages during the year (in which case it is 35%). For most people 25% is higher then their normal withholding.