I received a bonus checking for $2334 and neted out $1391. Is that possible be taxed at 60%?
AtlantaTaxExpert
Jan 13, 2011, 12:13 PM
Your math is off!
$1,391 of $2,334 is 60%, so the withholding is 40%.
Bonuses are typically withheld at 25-to-30% for federal INCOME tax, then 7.65% for FICA (Social Security and Medicare), and the rest for Wisconsin; hence, 40%.