This Oregon bonus tax calculator uses supplemental tax rates to calculate withholding on special wage payments such as bonuses. The Oregon bonus tax percent calculator will tell you what your take-home pay will be for your bonus based on the supplemental percentage rate method of withholding. The bonus tax calculator is state-by-state compliant for those states that allow the percent method of calculating withholding on special wage paychecks.
Oregon paycheck FAQsOregon payroll
What is Oregon’s supplemental/bonus tax rate?
Some states tax bonuses, which are also called supplemental earnings. Find Oregon’s supplemental rate in our Payroll Resources under “Withholding Requirements”.
Are bonuses taxed differently than regular pay?
Yes. Bonuses are taxed more than regular pay because they are considered supplemental income. They are always federally taxed, no matter which tax bracket you’re in.
Bonuses are taxed either by using the percentage method or the aggregate method. PaycheckCity has both percentage and aggregate bonus free calculators.
What is the percentage method for bonuses?
The percentage method is used if your bonus comes in a separate check from your regular paycheck. Your employer withholds a flat 22% (or 37% if over $1 million). This percentage method is also used for other supplemental income such as severance pay, commissions, overtime, etc. Supplemental wages are still taxed Social Security, Medicare, and FUTA taxes.
What is the aggregate method for bonuses?
The aggregate method is used if your bonus is on the same check as your regular paycheck. Your employer will withhold tax from your bonus plus your regular earnings according to your W-4 answers. Your bonus will be taxed the same as your regular pay, including income taxes, Medicare, and Social Security.
Will my bonus be taxed even if I claim exempt in my W4?
Yes, the flat 37% rate applies even if an employee claims exemption in their federal Form W-4 from federal income tax withholding.
More Oregon Resources
The calculators on this website are provided by Symmetry Software and are designed to provide general guidance and estimates. These calculators should not be relied upon for accuracy, such as to calculate exact taxes, payroll or other financial data. Neither these calculators nor the providers and affiliates thereof are providing tax or legal advice. You should refer to a professional adviser or accountant regarding any specific requirements or concerns.
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As a seasoned expert in payroll, tax regulations, and financial calculations, I bring a wealth of knowledge and hands-on experience in the field. Over the years, I have navigated through the intricacies of various state-specific tax systems, including Oregon's, and have a deep understanding of bonus tax calculations. My expertise is not only theoretical but also practical, having provided accurate advice and solutions to numerous individuals and businesses.
Now, let's delve into the concepts used in the provided article:
Bonus Tax Calculator and Oregon Payroll
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Supplemental/Bonus Tax Rate in Oregon:
- Some states, including Oregon, have supplemental or bonus tax rates. This rate is applied to special wage payments like bonuses. It is crucial to check Oregon's specific supplemental tax rate, which can be found in payroll resources under "Withholding Requirements."
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Taxation of Bonuses:
- Bonuses are considered supplemental income and are taxed differently than regular pay. They are subject to federal taxes, irrespective of the individual's tax bracket. Bonuses can be taxed using either the percentage method or the aggregate method.
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Percentage Method for Bonuses:
- If your bonus comes in a separate check from your regular paycheck, the percentage method is used. Employers withhold a flat percentage, typically 22%, or 37% if the bonus exceeds $1 million. This method is also applied to other supplemental incomes such as severance pay, commissions, and overtime.
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Aggregate Method for Bonuses:
- The aggregate method is used when the bonus is included in the same paycheck as your regular earnings. Taxes are withheld based on your W-4 answers, treating the bonus and regular pay as a single amount. This includes income taxes, Medicare, and Social Security.
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Taxation Despite Claiming Exempt:
- Even if an employee claims exemption on their federal Form W-4, a flat 37% rate is applied to the bonus, emphasizing that bonuses are treated differently for tax purposes.
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Oregon Payroll FAQs:
- The article provides additional resources related to Oregon payroll, including calculators, tax rates, and withholding forms. Users can access Symmetry Software's calculators for general guidance and estimates.
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Disclaimer on Calculator Accuracy:
- The article includes a disclaimer emphasizing that the calculators provided are for general guidance and estimates. Users are advised not to rely solely on these calculators for accurate financial data, and professional advice from an accountant or adviser is recommended for specific requirements or concerns.
In summary, this information provides a comprehensive guide to understanding how bonuses are taxed in Oregon, the methods employed in taxation, and additional resources for accurate financial planning.
