Taxation Of Bonus Payments . Bonus tax rate How bonuses are Taxed and withheld in 2024 Medium For example, let's say Jim's filing status is single The aggregate method combines your bonus and regular pay, withholding taxes based on your W-4, often leading to more accurate withholdings but smaller paychecks upfront
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Consider asking your employer to pay your bonus separately from your regular paycheck, and to calculate your tax withholding at the 22 percent flat rate the IRS allows for supplemental wages. Either way, remember that deferring a bonus does not mean eliminating the taxes on it — you are merely deferring the payment on those taxes along with the bonus itself
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