Data page
IRS supplemental wage flat rate
For ordinary bonus payments where supplemental wages from the employer do not exceed $1 million for the calendar year, PipGoat uses the common IRS flat supplemental wage withholding reference rate of 22%. For supplemental wages paid by the same employer over the annual threshold, the reference rate for the excess is 37%.
Current rate table
| Situation | Reference rate |
|---|---|
| Supplemental wages not over $1 million for the calendar year | 22% |
| Supplemental wages over $1 million for the calendar year | 37% for the excess |
What this rate affects
This affects the comparison in the Bonus Withholding Calculator. It does not determine the final tax on a bonus.
Official source
IRS Publication 15, supplemental wages section.
Last verified
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