Signing Bonus Tax
How is Signing Bonus Taxed? Have an Offer from Amazon in Seattle where Base and Signing Bonus will be paid monthly. How will these two be taxed?
Same, they will deduct the federal tax, depending on the info provided at i9
Usually at 22% and FICA, so 30% all up. It may not be enough as you’re likely in a higher tax bracket, so keep an eye on it.
Correct, joining bonus is not regular income. It’s considered supplementary income which is taxed at a flat rate of 22% federal + other taxes as appropriate
It is withheld at 22% if paid on a separate paycheck (amazon actually included it on my normal pay check resulting in it being withheld at normal rates). Everything is always taxed at the normal income tax rates though; you will likely end up owing more come tax time.
As regular income