Sample Bonus Template With Calculator In Georgia
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For example, if you received a $10,000 bonus, it would withhold $2,200. If you receive more than $1 million in bonuses and other supplemental wages during a single calendar year, the IRS requires your employer to withhold 37% (or the highest rate of income tax for the year) of the amount above the $1 million mark.
Your total bonuses for the year get taxed at a 22% flat rate if they're under $1 million. If your total bonuses are higher than $1 million, the first $1 million gets taxed at 22%, and every dollar over that gets taxed at 37%. Your employer must use the percentage method if the bonus is over $1 million.
The federal bonus tax withholding rate is typically 22%. However, employers could instead combine a bonus with your regular wages as though it's one of your usual paychecks—with your usual tax amount withheld.
Texas and Florida: No state income tax, so bonuses are only subject to federal withholding and FICA taxes. Illinois: A flat state income tax rate of 4.95% applies to all income, including bonuses. Georgia: The state applies a progressive income tax rate to bonuses, ranging from 1% to 5.75%.
The percentage method Bonus amount$10,000 Federal tax $10,000 X 22% = $2,200 federal income taxes withheld Remaining bonus $7,800
Georgia: The state applies a progressive income tax rate to bonuses, ranging from 1% to 5.75%. Connecticut: For supplemental wages such as bonuses, the flat withholding rate is 6.99%.
To calculate the Bonus Percentage, divide the total bonus by the annual salary, then multiply by 100.
