qbteachmt
Level 15

"The people wanted to know what tax rate were they being taxed at, well i told them i would ask around and see if i could get some idea, I said that they needed to put 30% of the amount in to a saving account and or put it away so that they could have money set a side to pay the taxes on it"

As you likely know, the tax brackets are Additive. There is no fixed tax on a payment, whether that is commission, sales of stock, paychecks, rent, or any other income considered taxable ordinary income.

You could have one sales person with $20,000 payroll who gets a $20,000 bonus.

You can have another sales person with $200,000 payroll who gets a $20,000 bonus.

You can have another sales person with $40,000 payroll, a spouse with $40,000 payroll, some rental income, and also gets a $20,000 bonus.

Each of these people have different tax rates because we work off of tax brackets, not flat tax tables. You know this because you see it every time your work on a Form 1040.

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