Bonuses are supplemental wages, so how much needs to be withheld?

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 compliance regulations. Abacus Payroll’s Flat or Percentage Bonus Pay Calculator helps calculate the employee’s takehome pay of the bonus amount after considering what needs to be withheld for the IRS. Typically the flat rate is 25%, but the amount of the bonus will determine the withholding rate.

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Important Information: The calculator that is provided on this web site is only meant to provide general guidance and estimates about the payroll process. It should not be relied upon to calculate exact taxes, payroll or other financial data. It may not match your Alloy Silverstein Group results precisely and is not intended to provide tax or legal advice. You should consult with a professional advisor or accountant concerning your specific concerns.

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