HR Forums » Human Resources Discussions » Compensation » Re: Taxing of bonuses

Taxing of bonuses

Last post 09-02-2009, 8:25 PM by ben_johnson. 2 replies.
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  •  08-27-2009, 11:28 AM 9117

    11dls55 is not online. Last active: 11-09-2009, 3:47 PM 11dls55



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  • Taxing of bonuses

    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?
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  •  08-27-2009, 6:01 PM 9119 in reply to 9117

    tanksleyj is not online. Last active: 11-18-2009, 6:50 PM tanksleyj



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  • Re: Taxing of bonuses

    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.
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  •  09-02-2009, 8:25 PM 9139 in reply to 9117

    ben_johnson is not online. Last active: 09-02-2009, 8:25 PM ben_johnson



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  • Re: Taxing of bonuses

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