Bonus Pay Calculator

How much of my bonus will I take home?

Your take-home bonus is the amount left after taxes and payroll
deductions are removed from the gross bonus. The deposited amount may be
reduced by federal income-tax withholding, Social Security, Medicare,
state or local withholding, retirement contributions, benefit
deductions, garnishments, and other payroll deductions.

This calculator estimates the bonus separately from regular wages.
Madison Paycheck can combine a bonus with hourly or salary pay, overtime,
detailed tax settings, deductions, and year-to-date payroll values for a
broader paycheck estimate.

How bonus withholding works

Bonuses are generally treated as supplemental wages for federal payroll
withholding. An employer may pay a bonus separately or combine it with
regular wages.

This calculator estimates federal bonus withholding using the common IRS
22% supplemental-wage method for separately identified bonus payments.
Your employer may use a different permitted payroll method, so actual
withholding can differ.

Bonus paycheck example

A $1,000 bonus adds $1,000 to gross supplemental wages. Using a 22%
federal withholding estimate, federal income-tax withholding would be
$220 before Social Security, Medicare, state withholding, and other
deductions are considered.

• Gross bonus: $1,000
• Federal withholding example: $220
• Social Security: may apply
• Medicare: may apply
• State or local withholding: may apply
• Payroll deductions: may reduce the deposit further

This is a simplified withholding example, not a prediction of final tax
liability or an exact employer-issued bonus payment.

Why does bonus withholding look different?

A bonus may appear to have more tax withheld than a regular paycheck
because employers can use different payroll methods for supplemental
wages. A bonus paid separately may use a flat federal withholding method,
while a bonus combined with regular wages may be withheld through the
employer’s normal payroll calculation.

Bonus withholding is not your final tax

Payroll withholding is a prepayment toward federal income tax. Your final
tax depends on total annual income, filing status, deductions, credits,
and the completed tax return. A 22% withholding estimate does not mean
the bonus is finally taxed at 22%.

What else can reduce a bonus payment?

In addition to federal withholding, a bonus may be reduced by Social
Security, Medicare, state or local taxes, retirement contributions,
insurance, garnishments, benefit deductions, and other employer payroll
deductions.

Combine a bonus with the rest of your paycheck

The Madison Paycheck app allows a bonus to be entered with regular hourly
or salary pay, overtime, commissions, tips, tax settings, deductions, and
year-to-date payroll values for a more complete paycheck estimate.

Explore the
Madison Paycheck Calculator Directory
for hourly, salary, overtime, bonus, state, and related paycheck
estimates.