Separate bonus check or one combined paycheck
Employers pay bonuses one of two ways, and it changes how much is withheld up front.
- On its own check, the bonus usually gets the flat 22% federal rate. Your regular paycheck is untouched.
- On the same check as your salary, many payroll systems add the two together and withhold as if you earned the combined amount every pay period. That is called the aggregate method.
For a single filer paid $2,500 every two weeks in Texas, a $5,000 bonus on a separate check nets $3,517.50, and the regular check nets $2,092.60. Put both on one check and the total is $5,559.56, because $1,150.54 of federal tax is withheld on the bonus instead of $1,100.00. In California the totals are $4,917.56 on two checks and $4,867.02 on one.
Bonus paycheck examples
Take-home on common bonus amounts for a single filer in Texas with $2,500 of regular pay every two weeks. The last column is the whole check when the bonus is paid together with regular pay.
| Bonus | Bonus check alone | Bonus on a combined check | Combined check take-home |
|---|---|---|---|
| $1,000 | $703.50 | $709.27 | $2,801.87 |
| $2,500 | $1,758.75 | $1,758.21 | $3,850.81 |
| $5,000 | $3,517.50 | $3,466.96 | $5,559.56 |
| $10,000 | $7,035.00 | $6,494.07 | $8,586.66 |
| $25,000 | $17,587.50 | $15,051.72 | $17,144.32 |
How to calculate your bonus paycheck
- Start with the gross bonus (the bonus payout calculator works it out from your target and ratings). Take out any 401(k) contribution your plan makes from bonuses.
- Federal income tax: 22% of the rest on a separate check, or the extra withholding the bonus adds to your regular check on a combined one.
- Social Security at 6.2% (until your wages for the year pass the wage base) and Medicare at 1.45%.
- State income tax. Many states use a flat bonus rate; others withhold as if it were regular pay. The bonus tax calculator lists every state's rate.
- Add the regular paycheck's take-home if both arrive on the same check.
Running payroll for the bonus instead? The bonus payroll calculator shows the employer's share of payroll taxes and can gross a bonus up to a set net amount. For the rest of your year, the paycheck calculator covers 401(k), health premiums and W-4 changes.