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Bonuses also mess up tax withholdings.

• kec 6y ago
  How? Company should withhold just as they would any other pay. Even if you get dumped on and it bumps you up a bracket it likely won’t have a huge impact as you’ll likely not have a ton of pay in that bracket.
  • jonny_eh 6y ago
    Companies often withhold a flat-rate on bonuses, and it's wildly different from your calculated withholding based on your actual tax bracket.