How is bonus money determined on the W4?
If I am paid salary every 2 weeks, but I received a bonus check for 2021 in April of 2022, is that calculated on the W4?
Or is that money I need to put aside to pay in at the end of the year?
How do I determine how much in taxes I need to put aside for bonus money?
Hello Meljane 20,
When you get a bonus the employer usually with holds 22% for federal taxes. Here is an article that explains the with holding in detail.
If you r effective tax rate is higher then 22% then you would need to put additional money aside to pay at the end of the year or send in an estimated payment.
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