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This question is about salaries.
Do bonuses get taxed?
Yes, bonuses do get taxed. Bonuses are subject to income taxes, although the IRS does not consider them regular wages. The IRS considers bonuses supplemental wages, and different federal withholding rules may apply to bonuses.
The amount of money that your employer withholds from your bonus depends on several factors, however, in general, if your bonus is for $1 million or less, it is subject to a 22% withholding flat tax rate.
Bonuses might also be subject to certain state taxes in specific states. Although, withholding flat tax rates for states concerning bonuses vary.
If you receive very large bonuses in excess of $1 million, you then have a 22% federal withholding rate on the first million, and then a 37% rate on bonus money above the first million.
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