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  How do bonuses get taxed?

  Posted by accounting lads on July 28, 2025 at 6:17 am

  The IRS treats supplemental income as bonuses. There were two options available to employers; the percentage method which would require 22 per cent federal taxes to be withheld or aggregate meaning your bonus is added to your regular pay check and the normal withholding rate is used. In addition to federal tax, there is state and local tax, Social Security and Medicare (FICA) deduction. Although the initial withholding is considered very high, you will be charged full tax on bonuses when you fill in your tax return using your full annual income.

  Source: https://accountinglads.com/bonus-tax-rate/

  accounting lads replied 2 weeks, 3 days ago 1 Member · 0 Replies
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