my offer letter says my sign on bonus will be taxed. will the same taxes as my salary apply to the bonus?

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Posting as :
works at
You are currently posting as works at

Stop. Stop. Stop.

Bonuses are WITHHELD at higher rates than salary. They are TAXED at the same rate. The IRS does not care how your company tags your cash compensation. Cash is cash to the IRS. You’re withholding is higher usually to prevent you from winding up in a higher bracket than your salary would put you at and thus you owing a tax bill at the end of the year that you weren’t expecting.

likesmart

BCG and Mck educating us on bonus taxation, big surprise

Bonuses are typically taxed at a higher rate than salaries.

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A1 was being facetious btw

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Another one of these posts…

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I swear we get this question every week

No.

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