Weekly Payroll Taxes with Bonus?

Question by Diego619: Weekly Payroll Taxes with Bonus?
Our payroll switched to a weekly payroll. Every other week our bonus is included in our paycheck.
Week 1 – gross regular paycheck was $ 1038.40 with $ 183.17 taken out for taxes
Week 2 – gross w/bonus $ 1,252.21with $ 470.22 taken out in taxes. I made LESS than my regular paycheck with my bonus.

When I questioned my payroll department about this they said “the system calculates the taxes based on the amount that is assumed will be my weekly paycheck”.

Does anyone else have a better explanation…because I still don’t understand.

Best answer:

Answer by Doctor Deth
BONUS pay is required by the IRS to have 25% federal withholding tax –
are the taxes you list including FICA & Medicare? – those have nothing to do with income tax – impossible to answer your question without knowing how much FEDERAL INCOME TAX is being withheld in each situation

they might be paying teh whole week 2 as a bonus 9incorrectly) and therefore it is withholding 25% of ALL teh income (incorrectly) instead of just 25% of the bonus amount –

they might have to make bonus payments as a separate check in order to get teh taxes right – if they are doing what I think thye are doing – they are withholding way too much federal inc tax and you will wind up with a huge refund next year

What do you think? Answer below!

Tags: bonus, payroll, taxes, weekly

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Tagged with: bonus • payroll • taxes • weekly

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