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» From: Eureka, IL

Dear TaxMama:

If an employer gives a bonus check, does it have to be taxed at 28% regardless of the amount of the check?

Tammy


Dear Tammy,

Employers generally do that because the check is not coming as part of a regular payroll period. So, the system uses a different tax table to compute the withholding.

If your employer will accept it from you, give them a W-4 for that paycheck that shows higher withholding.

Sometimes, it's just a company policy. It makes this less complicated for your payroll department.

If you want them to withhold less, be really nice to whoever is handling the payroll. If you wheedle nicely, they will help you. If you're aggressive, insistent and rude, I doubt they'll go out of their way for you.

Best wishes,

Eva Rosenberg
Your TaxMama

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