All bonuses under $1 million will be taxed at a 22% rate, and all bonuses over $1 million will be taxed at a 37% rate. These bonus payments are often made outside of the regular payroll cycle.

That rate will be applied to any supplemental wages, such as bonuses, up to $1 million during the tax year. If your bonus totals more than $1 million, the withholding rate for any amount of the ...

Note: If your supplemental wages for a year total more than $1 million, your employer must use the flat rate method and calculate your bonus withholding over $1 million at 37 percent.