State treatment of this bonus
The optional 8% method applies when the bonus is paid at a different time from regular payday. The current statewide transit rate remains 0.1%; the proposed increase did not take effect.
A worked bonus example
A $5,000 bonus has $400 state income withholding, $5 transit tax and $30 employee Paid Leave at a 0.6% share below the $184,500 cap, before federal and other deductions.
When this estimate does not apply
Confirm no additional assessable work hours for Workers’ Benefit Fund and all incremental local deductions. Private paid-leave plans are unsupported.
Regular resident W-2 wages, separately paid cash bonus after the entered regular wages, in the same payroll period only. A bonus paid before those regular wages is not supported. No benefit changes, state exemptions, stock awards, gross-up, or earlier supplemental payment in that period. Federal assumptions are shown in the form. Withholding is a payment toward tax, not the final tax bill.
Sources and related tools
Reviewed August 31, 2026. Federal bonus methods · Coverage and methodology