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Author: pmarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 124944  
Subject: Re: Someone help.. Uncle Sam really did me in Date: 12/8/1999 4:22 AM
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<< Although I have posted this reply before on bonuses, the answer is that Social Security and Medicare are at a total of 7.65%, one time checks are withheld at 28% and then there is state income tax. The percentage would be 35.65% plus whatever your state income tax percentage is. >>

One additional point. Employers can opt to just include the bonus in your regular pay for the pay period. The effect of this can be to make the withholding table think you're in a higher bracket than you are, i.e., as if you were earning that amount throughout the year. It results in overwithholding.

As has been previously stated, this is just withholding, not your final tax liability. If you've been overwithheld, get cracking on your return.

Phil Marti
Tax Preparer
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