I have not found any clarity looking at a lot of search engine results and articles.
Most articles state that there are 2 possibilities, that taxes from bonuses can be withheld at a flat 25% rate, or that it can be withheld based on income based on withholding tables, which are dependent on marginal tax brackets, and that the choice is dependent on the employer.
However, I have gathered from an answer on stackexchange that if withheld at the monthly income tax rate, the amount is refigured when one files her taxes, and so it is taxed based on ordinary income tax rates.
Is it the same for the flat 25% withholding, or is this amount considered to be the final taxes, which is not adjusted at tax time?
In other words are all bonuses just taxed at ordinary income tax rates?