Here are some belongings you can perform to minimize the influence of tax prices on your bonus. Be sure to do not forget that it's not a manual on how to bypass shelling out taxes on the bonus or normal wages, just rules on how that will help you reduced the effect that the normal taxes have.
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For reduce earners, a withholding amount of twenty-two% may well even feel unfairly higher, providing them the perception that bonuses are more than-taxed rather than essentially worthwhile.
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Understand that 22% is not the federal tax on bonuses, merely the withholding charge for taxation uses.
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