Not all states permit flat withholding from bonuses, so another method is to add the bonus to the employee’s standard paycheck.
Calculating bonus pay may not be as straightforward as you think. Use one of our Bonus Pay Calculators (Aggregate method or Percent/Flat method) based on your state’s regulations. Since employee bonuses are considered supplemental wages, the aggregate bonus pay method adds the employee’s bonus amount to their most recent paycheck to determine the appropriate withholding amount.