<prompt> Human: My wife will be getting her annual bonus next week and I started calculating what her net amount will be. I found both the percentage and aggregate methods and Im wondering why a business would choose the aggregate method since the employee receives less total money in the end and the percentage method appears to be easier accounting?  <response>: the employee receives less total money in the end How the bonus is withheld has nothing to do with how much you actually get. Bonuses are earned income just like regular wages. When you file your taxes, your 2016 taxable income is compared against how much tax has already been withheld. If too much was withheld, you get a refund. If too little was withheld, you owe money to the IRS. 