Viewing a single comment thread. View all comments

dragunight OP t1_j6n4eqs wrote

Reply to comment by wijwijwij in I feel like my bonus is being taxed too much by dragunight

It's all direct deposit so I'm not quite sure, but In my company's payroll software, there are 2 paystubs. 1 for my bonus and 1 for my normal base salary.

0

wijwijwij t1_j6n58u5 wrote

Sounds like they're calculating the withholding using the method (b) that is described in Publication 15 on withholding supplemental wages. I guess they can do that with separate checks as long as it's "paid concurrently."

>...Figure the income tax withholding as if the total of the regular wages and supplemental wages is a single payment. Subtract the tax already withheld or to be withheld from the regular wages. Withhold the remaining tax from the supplemental wages.

https://www.irs.gov/pub/irs-pdf/p15.pdf (page 19)

If you don't like the idea of overpaying so much during the year and waiting for refund, consider making an adjustment to W-4 that counters this across the year. It would be a Step 3 adjustment.

3

dragunight OP t1_j6n6cnw wrote

My bank direct deposit was just 1 number. The Payroll software has them broken out as separate paystubs, but again I'm not really sure.

2