Bonuses and overtime are considered taxable income and are subject to the same federal, state, and FICA (Social Security and Medicare) taxes as regular wages. SecurePayStubs automatically calculates these taxes based on the current IRS and state tax rates to ensure accurate reporting.
How SecurePayStubs Handles Bonuses and Overtime
- Separate Earnings Entries:
You can add bonuses or overtime pay in the Earnings section by selecting “Add Additional Earnings” and specifying the type and amount.
- Automatic Tax Withholding:
The system automatically applies the correct withholding rates to these earnings, ensuring taxes are deducted accurately from total pay.
- Clear Pay Stub Display:
Both bonuses and overtime appear as separate line items in the Earnings section of the pay stub, along with their respective taxable amounts and deductions.
- Accurate Year-to-Date Totals:
SecurePayStubs updates the year-to-date (YTD) totals for gross earnings and taxes, ensuring that bonuses and overtime are correctly included in end-of-year reporting.
Tip:
Always review your pay stub details to ensure bonuses and overtime are categorized correctly and reflected under the right earnings type.
With SecurePayStubs, all additional earnings — including bonuses and overtime — are calculated, taxed, and displayed accurately for transparent and compliant reporting.
Last modified: March 5, 2026
