the kona hr consulting logo

Understanding Bonus Taxation: Who Bears the Tax Burden and How Are Bonuses Taxed?

bonus taxation

To grasp bonus taxation, remember: you carry the tax weight, and bonuses face federal tax, Medicare, and Social Security deductions. Employers handle tax withholding using different methods. Bonuses alter taxable income and are shown in Box 1 of your W-2. Mastering IRS bonus tax rules is critical for optimized withholdings. Bonus tax rates vary and […]

the letter k is shown in black and green

Let's Start a Conversation

Fill out the form below and a member of our team will contact you within 10 minutes. (Mon-Fri 8am-6pm EST)

Name
This field is for validation purposes and should be left unchanged.