Are Social Security taxes withheld from bonuses?

Social Security taxes are indeed withheld from bonuses just as they are from regular wages. When an employee receives a bonus, it is considered supplemental income and is subject to the same tax treatments as regular earnings. This includes Federal Insurance Contributions Act (FICA) taxes, which cover both Social Security and Medicare taxes. Therefore, the correct answer highlights the fact that there is no exemption for bonuses when it comes to these taxes.

Understanding this aspect of payroll taxation is crucial for both employers and employees, as it ensures that the appropriate amount is deducted from bonuses, thereby contributing to Social Security benefits in the future.