But it helps to know how much of that bonus goes to Uncle Sam before you start planning all the ways you’re going to spend your extra money.
Here’s a break down of just just just how bonuses are taxed.
The IRS considers bonuses become “supplemental wages. ” a supplemental wage is cash compensated to a member of staff this is certainlyn’t element of his / her regular wages, in line with the IRS.
Generally speaking, bonuses of any sort, including signing bonuses and severance pay, fit into the supplemental wages category. Other types of supplemental wages consist of: