Supplemental Pay Changes: New Rates & Rules Under TC&JA
The Tax Cuts & Jobs Act has made sweeping changes for payroll. The supplemental wages are no exception. The supplemental wage withholding rates that apply to nonregular "supplemental" wages paid by an employer, such as bonuses and commissions, have changed - and payroll needs to under how to now comply. Compliance issues regarding when to apply default, optional and mandatory withholding methods for payments also make this a complex issue. The rules have also further complicated payroll record keeping. Join us for this 60-minute webinar to discover:
- New supplemental pay rates and when they apply
- When wage payments are supplemental wages or regular pay
- Latest IRS regulations on the withholding of supplemental wage payments
- Critical exceptions and options employers need to know
- Essential rules for withholding severance and deferred compensation
Key Issues for Supplemental Pay Compliance
- 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: Flat or Aggregate?
- Key approaches used to determine the applicable withholding rate
- Optional Flat Rate: How to apply it when it's permitted
- The penalties involved for failure to withhold & how to avoid them
Question and Answer Session - Hear expert answers to real-world questions!
About the Speaker
Patrick Haggerty is an educator, tax consultant, and author.
- Mr. Haggerty developed and teaches an online college level payroll courses.
- Pat is an Enrolled Agent (IRS licensed taxpayer representative), a Certified Management Accountant, and holds a Michigan CPA License.
- He has authored numerous published articles and a monthly column for payroll newsletters and is a sought-after speaker for professional associations.
Get the latest information needed to stay compliant with supplemental pay taxation and reporting requirements.