Taxing of bonuses

11dls55 · August 2009

I have been told that bonuses are taxed at a higher tax rate than the rate for regular wages. Can anyone confirm this and tell me where I can get this information in writing?

tanksleyj · August 2009

I believe bonuses are considered "supplemental income" and subject to the federal tax rate of 25%. Social security/medical and applicable state taxes also would be withheld.

Check out IRS Publication 15 at www.irs.gov. It lays out all the stipulations and how bonuses are generally taxed.

ben_johnson · September 2009

@tanksleyj is right, of course. Our department had this same issue come up when a product manager salary was in question last year.

Taxing of bonuses

Comments