My understanding is that for your paycheck, they will tax you at the effective tax rate based on what make over an year. For this incentive pay, they will tax you at the 28% tax rate regardless of your tax bracket. However when taxes are filed at the end of the year, you might get some of it back as a refund. I guess you could adjust you witholding for the rest of the year if you wanted that back sooner but then the year is almost over!
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