So you see, The important thing big difference below is usually that, while it is frequently carried out in an effort to have adequate dollars for taxes, withholding just isn't taxing.
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The main reason why is for the reason that bonuses are labeled as “supplemental wages” under IRS tips, which leads to companies to utilize a flat withholding charge of twenty-two% (which is in fact prescribed through the IRS) to protect the estimated taxes owed.
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