Bonus Withholding Calculations

Overview

Updated 02/21/2022

This article overviews different federal withholding scenarios when using the Bonus Transaction Type. 

Set-Up

Vertex Pay Code = Bonus - Tax rate 22% (current supplemental rate)

Vertex Pay Code = Cash - Reg Tax Rate

Scenarios

All scenarios shown below are calculated using the Bonus Transaction Type = Bonus

1. Bonus transaction paid out separately from Reg, OT & DT - 22% Rate
   
   
   
   

2. Bonus transaction paid out with Reg hours - 22% bonus tax + Reg tax = Tax Amount (gross taxable amount does not dictate overall tax amount when Bonus included) -
   
   
   
   
   
   

3. Bonus transaction paid out with Reg & OT hours - 22% bonus tax + Combined Reg & OT tax = Tax Amount (gross taxable amount does not dictate overall tax amount when Bonus included) -

   
   
   
   

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