Originally Posted by
higney85
And alpa, and if you put any in the 401k....
At the end of the year, yes, it's all taxed by you applicable rules, but you either need to be good at math for the W-4; (meaning you know what you will earn, and if joint, what your significant other will earn) or expect a refund OR owe more depending on your tax bracket. It's a flat 25% federal, then the rest (state, fica, ss, alpa, etc), and 401k if you so choose. Everyone's tax situation is different but the bonus requires some math, especially if you pick up often or have another variable that makes the W-4 a moving target for 24 regular checks.
At the end of the year it all lines up, but can be a bit skewed by individual bonus check.
"I was told there would be no math"
To clarify this once again for everybody, the bonus payments are WITHHELD at 25% federal due to the way they are viewed by tax law. However you ultimately pay federal tax on it at whatever your rate is for your income bracket. For most of us that means much of that 25% will ultimately be returned to you. So in short it is a misnomer, or at a minimum a cause of confusion to refer to the bonus as "taxed at 25%".