Supplemental Wages
TaxesCompensation beyond regular pay, including bonuses, commissions, overtime, and severance, often taxed at a flat 22% federal rate.
Example
Example: On a $75,000 salary, understanding supplemental wages could save you hundreds or thousands at tax time. For instance, if you are in the 22% marginal bracket, knowing how supplemental wages works helps you make smarter decisions about deductions, credits, and withholding. Check your tax picture with our income tax calculator.