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The IRS calculates how much you owe based upon your total yearly money, which includes fundamentally each individual dollar you make that falls into their taxable money categories (and they're comprehensive).
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The 22% withholding rate does not account for the real revenue bracket, And that's why it feels so superior in comparison with all the things else you’re taxed on.
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This allows them to withhold a similar tax rate on all the sum as one one payment. That is a prevalent apply in commission-based Positions, wherever staff members earn bonuses with the yr instead of as one lump sum.