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    Marinaisabell's Avatar
    Marinaisabell Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Sep 3, 2009, 01:55 PM
    Tax Rates on sign on bonus
    I am getting a five thousand dollar sign on bonus from the company I work for. What rate will it be taxed at?
    Marinaisabell's Avatar
    Marinaisabell Posts: 2, Reputation: 1
    New Member
    		  
    #2

    Sep 3, 2009, 01:59 PM

    What rate will a sign on bonus be taxed
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #3

    Sep 4, 2009, 05:12 AM

    How is your company going to treat it --- as salary income or as independent contractor income.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Sep 4, 2009, 05:43 AM
    More than likely, a flat 30% will be withheld.

    The bonus is subject to both INCOME and FICA (Social Security and Medicare) taxes.
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