Find out how big a bonus will be before it is paid. Enter salary, target bonus, performance ratings and months eligible to get the payout and
what you keep after taxes, or split a bonus pool across a team.
Bonus payout
$8,000.00
about $4,705.60 after taxes in California
Step
Amount
Target bonus (10% of salary)
$8,000.00
× company 100% × individual 100%
$8,000.00
Gross bonus payout
$8,000.00
Federal income tax (22%)
−$1,760.00
Social Security and Medicare
−$612.00
California tax and payroll deductions
−$922.40
Take-home payout
$4,705.60
The payout is 100% of target and 10.0% of salary.
Taxes use the flat 22% federal rate for a bonus paid on its own check. See the bonus tax calculator for the aggregate method.
The target percent is set by role or level, often 5% to 20% of base salary and more for senior staff.
Company performance funds the plan. Hitting revenue or profit goals pays 100%; plans often range from 0% to 150% or 200%.
Individual performance comes from your review. Meeting expectations is usually 100%, with a range above and below.
Proration cuts the bonus for new hires, leaves or part-year eligibility.
For an $80,000 salary with a 10% target, the target bonus is $8,000.00. A 120% company year and a 90% individual rating
make it $8,640.00. After the flat 22% federal rate, Social Security and Medicare, about $6,078.24 reaches your account in a
state with no income tax.
Target bonus by salary
Payouts at 100% company and individual performance for a full year.
Salary
5% target
10% target
15% target
20% target
$50,000
$2,500.00
$5,000.00
$7,500.00
$10,000.00
$75,000
$3,750.00
$7,500.00
$11,250.00
$15,000.00
$100,000
$5,000.00
$10,000.00
$15,000.00
$20,000.00
$150,000
$7,500.00
$15,000.00
$22,500.00
$30,000.00
Splitting a bonus pool
When a fixed pool is shared, each person's points are salary times a performance weight, and the pool is paid out in proportion. A
$50,000 pool across three people earning $90,000 at 100%, $70,000 at 120% and $60,000 at 80% pays
$20,270.27, $18,918.92 and $10,810.81.
Most plans multiply base salary by a target percent, then by a company performance factor and an individual rating. An $80,000 salary with a 10% target, a 120% company score and a 90% individual rating pays $8,640.00.
How much of my bonus payout will I take home?
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Paid on its own check, a bonus has 22% federal income tax, 6.2% Social Security and 1.45% Medicare withheld, plus state tax. The $8,640.00 example leaves about $6,078.24 in a state with no income tax. The bonus tax calculator shows every state.
Is a bonus prorated if I started partway through the year?
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Usually, by months or days worked in the plan year. Six months of eligibility on a $8,000 target pays $4,000.00. Some plans require a minimum service period or employment on the payout date, so check your plan document.
How do you split a bonus pool among employees?
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A common way is to give each person points equal to salary times a performance weight, then pay each their share of the total points. Equal weights split the pool by salary; equal salaries split it by performance alone.