Bash is correct. Withholding from bonuses is at the top NY state rate of 9.77%, regardless of how many withholding allowances you claim. Thus, your withholding from a bonus check in NY will be 25% for Federal, 9.77% for NY state, 7.45% for FICA (Social Security & Medicare), plus an additional 4.0% if you live in NY City. That is a total withholding of 42.22% (or 46.22% if you live in NY City).
As Bash noted, you will receive any excess back next April if the Federal or NY state withholding amounts were more than needed to cover your income tax based on your total earnings. BTW, unless you are making over a half million dollars a year, the NY withholding will almost certainly be more than needed, but you'll get any excess back in your NY state refund.
Total Tax Withholding
# Adding together federal, Social Security, Medicare and a 10 percent state income tax provide a total possible withholding rate of 42.5 percent. If you were paid a $10,000 bonus, the take-home portion after all these taxes would be $5,750. It is possible you will receive some of the withheld taxes back when you file your tax return. Bonus money is not actually taxed at different rates, the withholding is just different. If too much tax was taken from your bonus, the money will come back in your tax refund. For the latest updates PRESS CTR + D or visit Stock Market news Today
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