English people use this idiom when  someone or something is bothering or irritating them. It’s an informal expression that is used a lot. Norman uses it all the time when he is speaking to Anabel on Skype and his phone is bugging him because of so many beeping sounds.

Even if it is informal you could use it when you are speaking to your boss if you get on well with him. Anyway, if he is so formal then use «it’s bothering me».