Why is this taxated as such on bonuses?

[accountinglads]

The bonuses can be seemingly wasted due to the manner in which they are withheld by making one feel as though taxes on it are levied so high. The flat 22 percent federal tax rate that the IRS levies on bonuses is followed by Social Security, Medicare, and state taxes of up to 30 40 percent or even more in case. This initial deduction can be a hefty one particularly when it is compared to your normal pay check. Nevertheless, they are the estimates. Upon filling your tax, the IRS will compute your total income and tax bracket and therefore there is a possibility that you will get a rebate when they over deduct your bonus.

Read us: accountinglads.com/bonus-tax-rate