Tweet
Yes, there is a different taxation of bonuses compared to ordinary wages since they count as supplemental income. As opposed to your salary which is already taxable according to your tax bracket, bonuses are normally deducted at a rate of 22% when paid as add-ons. When stated together with a paycheck, they are computed at the general income rate with the aggregate approach that may take out more at first. The bonuses, as well as wages, are treated as ordinary income at the time, you complete your annual tax refund; though you should remember that despite the various withholding modes, the taxes on both these items will be the same. Are Bonuses Taxed Differently