Supplemental Pay Taxation: Essentials for Payroll
Like many payroll issues impacted by the Tax Cuts and Jobs Act, the supplemental pay withholding rate changed for the first time in many years.
So, what are the new rates? How were withholding requirements effected?
These are questions payroll must be able to answer. Managing the taxation of supplemental pay can be a complex challenge fraught with errors – and costly to correct. Learn how to properly tax any supplemental payment. Get the tools you need to:
- Tax supplemental pay including bonuses, severance pay and fringe benefits
- Distinguish between supplemental wage and regular wage payments
- Determine when to use each of the different supplemental rates correctly
- Identify the effect of Form W-4 and the payroll period have on withholding
- Apply the rules to common and not so common forms of supplemental pay
Key Issues for Supplemental Pay Compliance
- New withholding rates for supplemental pay
- Regular wages vs. supplemental wages: Know the difference
- W-4 & pay period issues: When a withholding table should be used
- Essential record keeping requirements: Avoid the common mistakes
Treatment for Special Forms of Compensation: Commissions, Bonuses & More
- Common (and not so common) examples of supplemental wages
- Special options for overtime pay & tips: Stay Compliant
- Guidelines & examples from the latest revenue ruling
Which Withholding Method to Use on Supplemental Pay
- Definitions and examples of supplemental pay
- What options are available, when may they be elected, and who decides
- Optional Flat Rate: How to apply it when it's permitted
- The penalties involved for failure to withhold & how to avoid them
Live Question & Answer Session - Have your questions answered by the expert!
About the Speaker
Vicki M. Lambert, CPP, is President and Academic Director of The Payroll Advisor™, a firm specializing in payroll education and training. The company’s offers a payroll news service which keeps payroll professionals up-to-date on the latest rules and regulations.
- With over 35 years of hands-on experience in all facets of payroll functions as well as over 20 years as a trainer and author, Ms. Lambert has become the most sought-after and respected voice in the practice and management of payroll issues. She has conducted open market training seminars on payroll issues across the United States that have been attended by executives and professionals from some of the most prestigious firms in business today.
This webinar covers the basics for payroll professionals on how to properly tax any supplemental payment including bonuses, severance pay and fringe benefits.