How are bonuses taxed? It’s a valid query given that, following a year’s worth of exertions aiding your company meet its ambitions, getting a bonus feels like a effectively-deserved reward for just about any purple-blooded American.
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The reason why is mainly because bonuses are classified as “supplemental wages” below IRS rules, which triggers companies to work with a flat withholding charge of 22% (which is really prescribed through the IRS) to go over the estimated taxes owed.
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