How to Calculate Payroll Taxes on a Bonus

Your employer can issue you a bonus check of during certain times of the year. Sounds great, or? It may be, but taxes are handled by your specific situation differently depending on. Do know get to keep all the details, so you can understand how much of this bonus.

Instructions

1. Bonus checks are also known as supplemental wages. You are paid mostly at the end of the year and the discretion of the employer. Most employers extend premiums than let employees know a way they are appreciated and recognized.  

2. The unfortunate thing about premium is controls how they are taxed. It is a flat rate of 25 percent for federal taxes. And depending where you live, there is also a flat rate for the retention of the State. Many try to the 25 percent rule to skip but with little success. Sometimes, you can increase the erlangbaren to your regular review before receiving the bonus. Your bonus check compensation that is deducted for the high taxes. You can adjust your taxes later. Another possible solution is to increase your restraint, after you have received the bonus amount. This method only works if you get your bonus before the end of the year. 

3. There is also the aggregate method. Staff encourage this more than the fixed rate. Their bonus check is with your regular review, paid, so it based on the erlangbaren, connected is calculated with the periodic review. Depending on the wage and payroll software is used the system could be the bonus as regular income, treat, you in a higher tax bracket place that can. 

4. Some employers are generous enough to do, what has called a "Gross-Up," where your bonus is issued as a separate test, and your net salary corresponds to the amount of the bonus. Meaning, no taxes will be deducted. In this case, the employer pays all taxes, but the amount of the bonus is added to your year to-date result. 

5. In the calculation of premiums, you take care, all IRS and State follow guidelines. If you are confused as your bonus check will be taxed, there are several online resources to help calculate. Or contact your Department. In the settlement are trained to deal with such matters. If they don't know the answer, they will know usually where to find you