I'm paid salary bi-weekly. So my check is always the same. My bonus check was 40% of my bi-weekly salary. My fed deductions for my bonus check was double my normal bi-weekly federal deduction. Is that right?
Bonus check calculations are based on supplemental taxing which is 25% for federal taxes. They do not look at what is on your W-4 for the taxes in this case. It sounds like you are in a low tax bracket for your normal bi-weekly check, so yes this can happen realistically.
Source(s):
20 yrs payroll experience
My husbands bonus check deductions were like that. I checked into it and in his case there was a different formula for figuring FIT on bonuses. It's been a few years ago and I can't remember all the details of what I discovered, but yes, that is probably correct.
You can go to the IRS website and look at their publication Circular E (I believe) and see the instructions for payroll deductions.
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