What is Bonus Tax Rate?

[accountinglads]

The Bonus Tax Rate is the rate at which the IRS or the local taxation legislation taxes the bonuses at a different rate with that of regular wages. Bonuses are treated as supplemental income in the U.S., and are subject to a flat 22% federal tax relatively frequently. But added to regular pay they can also be at higher withstanding, based on the overall amount you earn. Other relative influences such as state income tax, Social Security, and Medicare might also influence the amount you pocket when it comes to a bonus.