Can I ask my employer to withhold differently on a bonus?

Sometimes — some payroll systems allow a W-4 supplement or percentage election for supplemental pay. Otherwise, adjust quarterly estimates or accept the April true-up.

Is the 22% rate the same for commissions?

Identified supplemental wages (commission paid separately) follow the same flat rules; commissions paid with regular wages are withheld on the combined amount as ordinary wages.

RSU vesting withholds at the supplemental rate too, but shares themselves create ordinary income at vest — the same prepayment logic applies, with basis and capital gains entering when you later sell.

Bonus Withholding Calculator

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How the bonus tax calculator works

Why bonuses feel taxed harder

Employers withhold on bonuses using IRS supplemental rules — a flat 22% (37% above $1M) instead of your W-4-driven schedule. If your true marginal rate is 12%, the bonus arrives looking over-taxed; if it is 32%, under-taxed. The money reconciles on your 1040, not on payday — which is exactly why the feeling and the reality disagree.

The FICA nuance

Bonuses pay 7.65% FICA like any wage — unless your year-to-date wages already crossed the Social Security wage base, in which case only the 1.45% Medicare slice applies. Late-year bonuses for higher earners often skip Social Security tax entirely, a small surprise in your favor.

Redirecting the net smartly

A bonus is the cleanest time to fund things that compete with lifestyle creep: the 401(k) election on the bonus (many plans allow it), the emergency fund line, the high-interest debt. Some plans let you elect a flat dollar or 99% of the bonus into the 401(k) — pre-tax treatment beats the flat withholding game entirely.