Bonuses in Florida are subject to federal income tax (22% for amounts ≤$1 million; 37% for >$1 million) and FICA taxes (7.65% for Social Security and Medicare). Florida has no state income tax, so no additional state tax applies.

The IRS mandates a 22% flat federal withholding rate for supplemental income like bonuses under $1 million. This rate applies regardless of Florida’s lack of state tax, but your final tax liability depends on your total annual income.

No. Florida does not impose state income tax on bonuses or wages, so only federal taxes apply.

Subtract federal withholding (22% or 37% for >$1 million) and FICA taxes (7.65%) from the gross bonus. Example: A $10,000 bonus yields $6,935 after taxes ($10,000 – $2,200 federal – $765 FICA).

Yes. Employers may use the percentage method (flat 22%/37%) or the aggregate method (combining bonus with regular wages and using IRS tables). The latter often results in higher withholding.

Yes. Bonuses are federally taxable as supplemental wages but exempt from Florida state income tax.

• Adjust your W-4 to potentially increase allowances (consult a tax professional).
• Contribute to tax-deferred retirement accounts like a 401(k) or traditional IRA.
• Request your employer use the aggregate method if your overall income falls into a lower federal tax bracket than 22%.

Yes. Federally, the IRS requires withholding at 37% for the portion of supplemental wages exceeding $1 million within a calendar year. The first $1 million is typically withheld at 22%. Florida still imposes no state income tax.

Bonus withholding often uses a flat federal rate (22% or 37%), which simplifies the process but may not reflect your actual tax bracket. Regular income tax withholding uses graduated tax brackets based on your W-4 information and pay frequency. Your final tax liability for all income is calculated using the progressive brackets when you file your annual tax return.

Since bonuses are often withheld at a flat 22% federally, this might be higher than your actual overall tax rate, potentially leading to a larger tax refund. Conversely, if 22% is lower than your marginal tax rate, you might owe more taxes or receive a smaller refund. Use the IRS Tax Withholding Estimator tool to check your overall withholding.

Yes. Cash referral bonuses are considered supplemental income and are subject to federal income tax withholding and FICA taxes. Significant non-cash gifts might also be taxable depending on their value, although small de minimis benefits (like gifts under $100) may sometimes be excluded.

You cannot negotiate the tax rates themselves, as they are set by the IRS. However, you can discuss with your employer whether they use the percentage (flat rate) method or the aggregate method for withholding, especially if the aggregate method would result in withholding closer to your actual tax liability.

Yes. The federal withholding rules (22% flat rate or aggregate method) and FICA taxes apply to bonuses regardless of whether the employee is full-time or part-time. Florida's lack of state income tax also applies equally.

Stock bonuses (like Restricted Stock Units or RSUs) are generally taxed as ordinary income at the federal level based on their fair market value when they vest (become fully yours). This income is subject to federal income tax withholding and FICA taxes. Florida imposes no state income tax on this income. Subsequent appreciation may be taxed as capital gains when sold.

You can use various online payroll or tax calculators. Look for calculators that specifically handle supplemental wages or bonuses and allow you to input "Florida" or select "No State Income Tax." Reputable financial websites or payroll service providers (like ADP, Paychex, Gusto often have free calculators) are good resources. Ensure the calculator is updated for 2025 rates.