FREE TOOL · MANAGER + EMPLOYEE FACING
Bonus Tax Estimator
Supplemental flat rate (22%) vs. aggregate method — side-by-side. See exactly what the employee takes home before you approve the bonus.
Bonus Details
$
$
Used for aggregate method calculation
Common State Supplemental Rates
California10.23%
New York11.7%
Oregon8%
Minnesota6.25%
Illinois4.95%
Texas / Florida0%
Method 1 · Supplemental Flat Rate
Federal withheld at 22.0%
$3,267.50
employee take-home
Effective rate: 34.6%
Method 2 · Aggregate Method
Federal withheld at marginal 22.0% bracket
$3,200.85
employee take-home
Effective rate: 36.0%
Supplemental method = more take-home
The supplemental flat rate withholds $66.65 less in federal tax. This happens because the employee's marginal rate (22.0%) is higher than 22%, so the flat rate is advantageous. Either method is permissible under IRS rules — the employer chooses.
Full Deduction Breakdown
Deduction
Supplemental
Aggregate
Federal Income Tax
22.0% flat vs. 22.0% marginal
−$1,100.00
−$1,166.65
Social Security (6.2%)
on $5,000.00
−$310.00
−$310.00
Medicare (1.5%)
No cap
−$72.50
−$72.50
State (5.0%)
Both methods same
−$250.00
−$250.00
Total Withheld
−$1,732.50
−$1,799.15
Net Take-Home
$3,267.50
$3,200.85
How the Aggregate Method Works
Regular period gross pay$2,884.62
+ Bonus added to period+$5,000.00
Combined period gross$7,884.62
Federal tax on combined (annualized)−$1,478.73
Minus: regular period federal withholding+$312.08
Federal withheld on bonus only$1,166.65