Free staff pay & hr tool
Bonus Calculator: Percentage, Flat and Target-Based, After Tax
To calculate a bonus as a percentage, multiply salary by the bonus percent: a 5% bonus on a $60,000 salary is $3,000. If the bonus is paid separately, federal income tax is commonly withheld at the flat 22% supplemental rate (IRS Publication 15, 2026), plus 7.65% FICA, so about $2,110 reaches the employee before any state tax. Use the calculator for flat and target-based bonuses.
Prepared by Prospyr · Reviewed October 3, 2026 · Free, no sign-up, runs in your browser
Enter your state's rate for supplemental pay, or 0 to leave it out.
Gross bonus
$3,000.00
5% of a $60,000 salary.
Estimated take-home
$2,110.50
29.7% withheld
Federal at 22%
$660.00
Social Security + Medicare
$229.50
State
$0.00
Employer FICA match
$229.50
Total cost to practice
$3,229.50
An estimate for planning. It uses the 22% flat supplemental method and does not cover the aggregate method, the 37% rate over $1 million, the Social Security wage base or local taxes. Not tax advice; your payroll provider calculates actual withholding.
Bonus calculator percentage: the three formulas
- Percent of salary: bonus = salary × bonus % ÷ 100.
- Flat amount: the bonus is the number you set. Divide by salary to see it as a percent.
- Target-based: bonus = salary × target % × practice result % × individual result %.
Practices often use the target-based version for providers and managers, with the practice factor tied to revenue or patient volume. For pay that moves with every sale instead, use the commission calculator.
Bonus after tax: how supplemental wages are withheld
IRS Publication 15 (2026), Section 7, says the withholding rate on supplemental wages stays at 22%, or 37% for supplemental wages above $1 million in a calendar year. Bonuses and commissions count as supplemental wages. Employers can identify the bonus separately and withhold the flat rate, or add it to regular wages and use the aggregate method.
This tool uses the flat 22% method, then 6.2% Social Security and 1.45% Medicare, then a state percentage you enter. The result is an estimate of take-home pay. Final tax is decided on the employee's return, so the withholding can be higher or lower than the tax owed.
Worked example: a $60,000 salary and a 5% bonus
| Line | Math | Amount |
|---|---|---|
| Gross bonus | $60,000 × 5% | $3,000.00 |
| Federal withholding | $3,000 × 22% | $660.00 |
| Social Security | $3,000 × 6.2% | $186.00 |
| Medicare | $3,000 × 1.45% | $43.50 |
| Take-home before state tax | $3,000 − $889.50 | $2,110.50 |
| Employer FICA match | $3,000 × 7.65% | $229.50 |
| Total cost to the practice | $3,000 + $229.50 | $3,229.50 |
Bonus planning for a practice
Bonus pools work best when the metric is something the team can see and affect. Revenue per provider, retail attach rate and rebooking rate are common choices. Prospyr's analytics reports those numbers by provider and by month, so the payout math starts from the same figures everyone sees.
Frequently asked questions
How do I calculate a bonus percentage of salary?
Multiply annual salary by the bonus percentage and divide by 100. A 7% bonus on $80,000 is $80,000 × 0.07 = $5,600. To go the other way, divide the bonus by the salary: $2,500 on $60,000 is 4.17%.
What is the federal tax rate on bonuses?
Per IRS Publication 15 (2026), the withholding rate on supplemental wages is 22%, or 37% on supplemental wages paid to an employee above $1 million in a calendar year. That is withholding, not the final tax. The actual tax is settled on the employee's return at their regular rates.
Are bonuses and commissions taxed the same way?
For withholding, yes. IRS Publication 15 lists bonuses and commissions among supplemental wages, which are wages paid in addition to regular pay. Employers can withhold a flat 22% when the supplemental wages are identified separately, or combine them with regular wages and use the aggregate method.
How do I calculate a target-based bonus?
Multiply salary by the target bonus percent, then by the practice result and the individual result, each as a percent of goal. A 10% target on $80,000 is $8,000. At 120% practice and 90% individual results, it becomes $8,000 × 1.2 × 0.9 = $8,640. Your plan document sets the real factors, caps and thresholds.
Does FICA apply to bonuses?
Yes. Social Security tax is 6.2% and Medicare tax is 1.45% each for the employee and the employer, per IRS Publication 15 (2026). Social Security stops once wages pass the annual wage base ($184,500 for 2026), so a high earner's bonus may owe less. This calculator assumes the base has not been reached.
Why does my bonus check look smaller than the number I was promised?
The promised number is gross. Federal withholding, Social Security, Medicare and any state tax come out before the check. At 22% federal plus 7.65% FICA, about 29.65% is withheld before state tax, so a $3,000 bonus nets about $2,110. Some of that withholding may come back at tax time, depending on the employee's return.
What does a bonus cost the practice?
The gross bonus plus the employer's share of FICA, which is 7.65% below the Social Security wage base. A $3,000 bonus costs about $3,230 before any workers' compensation or unemployment tax effects. Budget for the cost, not just the check.
Sources and scope
- IRS Publication 15 (2026), Circular E, Employer's Tax Guide: Section 7, Supplemental Wages
22% supplemental withholding rate (37% above $1 million), supplemental wages including bonuses and commissions, the aggregate and separately identified methods, and 6.2% Social Security (wage base $184,500 for 2026) and 1.45% Medicare, each for employee and employer.
An estimate for planning, not tax advice. Actual withholding depends on the employee's Form W-4, the method your payroll provider uses and state rules.