How Are Bonuses Taxed? Bonuses are viewed as supplemental salaries, i.e., they are taxed differently as compared to the usual wage payment. There are two IRS-approved approaches that are used by employers: the percentage approach in which a flat 22 percent federal withholding is imposed, or the aggregate approach in which the bonus is added on top of your regular paycheck and subject to your current income bracket. To add to this Social Security, Medicare and even state taxes are in effect and the bonus appears even smaller. Nevertheless, this withholding does not represent the ultimate tax owed but it modifies at tax time. This knowledge will make you spend prudently or invest in assets such as Ecryptobit.com NFT.