State income tax (SIT) withholding

State income tax (SIT) is withheld from employee earnings each payroll (and later paid)—there are a few factors that go into the income tax calculation.


When you process a bonus payroll Gusto will automatically withhold federal income taxes at the supplemental withholding rate of 22%The rate changes for bonuses over $1 million dollars. 

Each state has its own rate for supplemental withholding as well, which can be found below.