- Annualized: Annualizes the gross pay, calculates tax on the annualized amount, and then converts the tax amount back to a per pay period withholding amount.
- Flat: Calculates withholding on special wage payments, such as bonuses, by using supplemental tax rates.
- Current aggregation: Uses the current period paycheck amount to apply the correct withholding rates to special wage payments, such as bonuses.
| Calculator | Federal Calculation Method | State Calculation Method |
|---|---|---|
| Salary, Hourly, 401(k), 403(b), Final pay, Stock option, and Tuition | Annualized | Annualized |
| Flat bonus | Flat | Flat |
| Aggregate bonus | Flat or current aggregation for bonus amounts Annualized for gross pay amounts | Current aggregation for bonus amounts Annualized for gross pay amounts |
| Gross-up | Flat or current aggregation Annualized, for gross pay YTD if provided | Flat or current aggregation Annualized, for gross pay YTD if provided |
| Tax tip | Annualized | Annualized |

