calculate tax on employment bonus/severance in New York City ; I work for a Magazine publisher in New York City and my department is being relocated to another state. For those of us who choose to stay til the move date we get a "
Stay Bonus" of about $4000 at least in my case. The money is not tax exempt and it will appear on a check separate from my paycheck. My question is how much of this can I expect to receive after tax and how do I find out how much tax will take away. I've claimed 2 on my W-4 if thats any help. I'm getting a million different answers stating anywhere from 10% to 46% being taxed from it. Any help appreciated.
Best Answer
Bonuses and severance payments are considered supplemental compensation, therefore it is subject to withholding at statutory rates. They will withhold 6.2% for social security, 1.45% for medicare, 26% for federal, 7.35% for New York state, and 4% for New York city (if you are a NYC resident). Therefore, your withholding will be 45% and your take home will be 55%, or $2,200.
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