2007-05-28 02:23:32 · 4 answers · asked by escee 1 in Business & Finance ➔ Taxes ➔ Other - Taxes
Sorry Bostonian I normally agree with your answers, however, you are half right. Bonus (supplemental payments) are taxed at either 25%, if identified as bonus/supplemental, Unless the supplemental pay for the year is over $1 million, then the amount over is taxed at 35%)or in the aggregate with regular pay, based on the employee's W-4.
Publication 15 specifically states NO OTHER percentage can be used. (Here is the link: http://www.irs.gov/publications/p15/ar02.html#d0e1560 )
2007-05-28 16:49:19 · answer #1 · answered by Mom of 2 4 · 0⤊ 0⤋
Irregular payments such as bonuses are withheld at that statutuory rate of 25%. You may request a higher withholding amount if you wish. The bonus and the tax withheld will be reflected on your Form W-2 at the end of the year.
2007-05-28 09:27:11 · answer #2 · answered by Bostonian In MO 7 · 1⤊ 0⤋
The first poster covered it well. Except he forgot to mention maximum withholding you could have is 85%.
2007-05-28 21:49:21 · answer #3 · answered by summababitch 2 · 0⤊ 1⤋
yes...all income is subject to withholding tax
2007-05-28 09:30:45 · answer #4 · answered by bobsled 5 · 0⤊ 0⤋