Originally Posted by
tennisguru
Any bonus is withheld at something like a 30-40 percent federal rate, but at the end of the year when you file your taxes it counts as regular income towards your total for the year and will actually be taxed at whatever tax bracket you fall into.
Bonuses are withheld at
25%. The rate would only be higher than 25% if the bonuses were over $1M or your employer counted it as normal earnings and your top bracket is over 25%.
A first year single FO at PSA will probably have an effective rate of around 8-9%, based on a gross income of $31,600. This includes min guarantee and the 10K bonus along with assuming the standard deduction.