Institutional-grade supplemental wage forecasting. Solve for flat rates, aggregate withholding, and net-payout logic.
IRS PUB 15
2026 Withholding Sync
| Tier | Flat Rate |
|---|---|
| Under $1 Million | 22.0% |
| Over $1 Million | 37.0% |
| Aggregate Method | Bracketed |
| Tax Type | Percentage |
|---|---|
| Social Security | 6.2% |
| Medicare | 1.45% |
| Add. Medicare | 0.9% |
| Objective | Outcome |
|---|---|
| Max Net Payout | Flat Method |
| Tax Shielding | 401k Divert |
| S-Class v2.6 | Precise |
Bonus taxation represents a distinct fiscal layer within the U.S. tax code. In the 2026 economic landscape, the focus is on navigating **Flat vs. Aggregate Withholding Friction**.
Solving for effective tax liability
Tracking liquidity impact tiers
Publication 15-T modifications 2026
"Calibrated against 2026 IRS withholding modifications and supplemental wage protocols for high-intent fiscal transparency."
A: Bonuses are considered supplemental wages. Most employers use the flat 22% federal withholding rate. For bonuses over $1 million, the excess is withheld at 37%. State taxes, Social Security (6.2%), and Medicare (1.45%) also apply.
A: The aggregate method combines your bonus with your regular paycheck for that period, calculates total tax, then subtracts what was already withheld from regular pay. This can result in higher or lower withholding than the 22% flat rate depending on your tax bracket.
A: Withholding is not your final tax. At year-end, your actual bonus tax depends on your total income and marginal bracket. If too much was withheld, you get a refund. If too little, you owe more. The 22% flat rate often over-withholds for lower earners.
Don't let withholding friction erode your supplemental income. Initiate your institutional-grade bonus audit.
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