Are bonuses required to be taxed at 25%?
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No. Assuming that we are talking about federal income tax withholding only, then if you look at IRS publication 15, Supplemental Wage Withholding Methods, then you will see that while you must used a legal supplemental withholding method, that Flat Tax 25% is only one of several legal methods. In fact, there are times when this method cannot be legally used. I am including a pointer to the legal methods discussed in IRS publication 15.
http://www.irs.gov/publications/p15/...link1000202352
There are also some legal but less common methods discussed in IRS publication 15A."Reality is that which, when you stop believing in it, doesn't go away".
Philip K. **** (1928-1982)
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