Clerkship bonus withholding. Forum
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Anonymous User
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- Joined: Tue Aug 11, 2009 9:32 am
Clerkship bonus withholding.
60% of my clerkship bonus was subject to tax withholding in NYC. That has to be a mistake right? What were the withholding rates on some of your bonuses.
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onlyaminute
- Posts: 1
- Joined: Sat Nov 28, 2020 4:05 pm
Re: Clerkship bonus withholding.
Best to just email someone in payroll/accounting and ask because they can make some choices on their end.
FICA can add 8.55% for high earners, fed rate can be 22% or more (depending on if you've earned $1M+ in "supplemental" pay for that year - a bonus is supplemental pay - can be instead 37%), state + NYC taxes can be 15.95%. Can also be higher than 22% if they use the aggregate pay method for the feds (i.e., they use your normal tax rate, not the 22% flat rate for supplemental pay).
Bonus taxes hurt (same for overtime pay, though we don't see that as exempt). I never expect more than 50% of a bonus in pocket, and I usually see a 50% hit but I don't live in NYC.
Regardless, it will all true up when you file your various tax forms.
FICA can add 8.55% for high earners, fed rate can be 22% or more (depending on if you've earned $1M+ in "supplemental" pay for that year - a bonus is supplemental pay - can be instead 37%), state + NYC taxes can be 15.95%. Can also be higher than 22% if they use the aggregate pay method for the feds (i.e., they use your normal tax rate, not the 22% flat rate for supplemental pay).
Bonus taxes hurt (same for overtime pay, though we don't see that as exempt). I never expect more than 50% of a bonus in pocket, and I usually see a 50% hit but I don't live in NYC.
Regardless, it will all true up when you file your various tax forms.
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Anonymous User
- Posts: 432808
- Joined: Tue Aug 11, 2009 9:32 am
