Originally Posted by Pedro4President

Not sure why this keeps coming up but I'll try to simplify.

Two words- "withholding" and "taxes"

Taxes are paid based on a percentage of income.

Money is "withheld" each pay check to pay taxes. How much is taken out is determined by how someone files a w-4.

Bonus money may be withheld at a higher rate but it is not taxed at a special bonus tax rate. When you get you w-2s there won't be a box that says 20k "bonus" money. It is included in your taxable income box.