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How Are Bonuses Taxed?

One way to recognize employees for contributing to the success of a business is to reward them with a bonus. Although bonuses are great for employee appreciation, they come with a twist: their own tax ...
When you get a bonus — or other supplemental wages such as severance pay, commissions, etc. — your employer must withhold some of the money to send to the IRS for taxes. Your employer may withhold 22 ...