Company bonus

Forum|Forum|6 years ago
October 18, 2019
3 replies
16 views

My company offers the ability to change the withholding on my bonus as if it's a normal paycheck (semi-monthly, monthly, quarterly, or annually. How do I decide which is the best option? I'm in the 22% tax bracket and have no withholdings and always use the standard deduction.

Withholding

Anonymous_

Level 15

You can try the TurboTax W-4 Withholding Calculator.

See https://turbotax.intuit.com/tax-tools/calculators/w4/

Critter

Level 15

I think you are confused ... if they will allow you to change your withholding for just the one paycheck that includes the bonus to reduce the taxes withheld then it will be for the same pay period that the checks are normally paid on ... so if you are paid weekly normally you need to use the weekly chart. See if they will allow you to have a flat % withheld instead.

jencraftAuthor

Level 2

It doesn't come with our paycheck, it's a separate amount. Our HR professional gives us a sheet asking us to take taxes out as if the amount is taxed as "annually, semi-annually, quarterly, monthly, or semi-monthly" with semi-monthly being the most. I wish we could select a flat tax!