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The IRS calculates the amount you owe dependant on your total annual money, which includes effectively just about every greenback you make that falls into their taxable money categories (and they are extensive).
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Nevertheless, it is straightforward to discover how, when investigating a 22% withholding flat amount, an worker within a decrease tax bracket may possibly request “why are bonuses taxed in excess of my standard earnings?”.
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In the meantime, bonuses are categorised as supplemental wages, a completely distinct category of wage that uses a flat 22% withholding fee, that is most unquestionably increased than your own personal tax bracket.