StubRate · Guides · 7 min read
Bonus Paychecks After Taxes: Why the Extra Check Looks Small
Bonus withholding often uses a flat supplemental rate, so the check looks harsher than your regular stub rate. Here is how to estimate what you keep.
Withholding is not the tax bill
A bonus check can have a large federal bite because payroll uses supplemental withholding rules, not your average salary stub rate. FICA still applies unless you are over the Social Security wage base. State withholding may use its own supplemental method.
In April, that bonus is just more ordinary income in most cases (unless it is a special equity event). You might get some withholding back—or owe more. The scary check is a cash-flow event.
Do not spend the gross bonus
If someone promises a $10,000 bonus, do not budget $10,000. A rough planning haircut is federal supplemental withholding plus FICA plus your state’s bite. For many people that is 30%+ gone from the bonus check even when their annual effective rate is lower.
Run your salary in StubRate for the job’s baseline. Treat the bonus as a separate, more heavily withheld deposit.
Signing bonuses and clawbacks
Signing bonuses are often paid up front and taxed like supplemental wages. If you leave early, you may have to repay the gross amount while you only received the net. Read the clawback before you count that money as stub rate.
Relocation lump sums have the same shape: net today, possible repayment later, not a permanent raise.
FAQ
Why was my bonus taxed so high?
Employers often withhold supplemental wages at a flat federal rate (commonly 22% for many bonuses) plus FICA and state withholding. That is not always your final tax rate. Your return may refund or owe the difference.
Does StubRate model bonus withholding?
The main calculator is built for recurring salary. Treat a bonus as extra gross in a rough annual estimate, and expect the actual bonus check to withhold more aggressively than your average stub rate.