This page (revision-22) was last changed on 26-Nov-2021 10:22 by mmcfarland

This page was created on 26-Nov-2021 10:22 by jmyers

Only authorized users are allowed to rename pages.

Only authorized users are allowed to delete pages.

Page revision history

Version Date Modified Size Author Changes ... Change note
22 26-Nov-2021 10:22 25 KB mmcfarland to previous
21 26-Nov-2021 10:22 25 KB mmcfarland to previous | to last

Page References

Incoming links Outgoing links
US Taxation Supplemental Pay Processing
US Taxation Supplemental Pay Processing

Version management

Difference between version and

At line 195 removed 2 lines
At line 196 added 2 lines
!State Supplemental Tax – WITH or WITHOUT Regular Pay
*Depending on if the Supplemental Wages are paid WITH or paid WITHOUT the Regular Wages, each State may have different methods to handle Supplemental taxes. Please refer to this link:\\ \\[http://www.payroll-taxes.com/PayrollTaxes/supplemental_states.htm]\\ \\An Example for the State of Maryland below shows the differences of the State Supplemental Tax results when the ‘FLAT’ or ‘CURRAGG’ tax methods are used.
At line 199 changed one line
|Maryland GEO: 24-001-1713506 Allegany|
|Paid with Regular Wages|Paid at Different Time than Regular Wages
|Add to regular wages and Withhold on total|Withhold at 6.25% plus rate applicable to county of residence\\ \\Or Add to regular wages, compute tax on total, and Subtract tax withheld on regular wages
At line 203 added 7 lines
*Local Level Supplemental Tax Method uses the same State Level Supplemental Tax Method\\ \\For Example: State of Maryland:
**Supplemental is Paid with Regular Wages, when SSP Method = ‘Flat Percent Method’
****this actually uses Method ‘Paid at Different Time than Regular Wages’\\ \\[US_Taxation _Supplemental Pay Processing_03.JPG]
|Maryland Sup Rate| 916.96 x 6.25% = 57.31
|Local Rate for Allegany County, MD| 916.96 x 0.0305 = 27.97
| | = 85.28: PC 6052
|Res SIT + Res Supp Tax | 214.07 + 85.28 = 299.35 Note: Higher than ‘CURRAGG’ method
At line 202 changed one line
**Sup is Paid with Regular Wages, when SSP Method = ‘Current Aggregation’
At line 204 removed 28 lines
3.2 State Supplemental Tax – WITH or WITHOUT Regular Pay
• Depending on if the Supplemental Wages are paid WITH or paid WITHOUT the Regular Wages, each State may have different methods to handle Supplemental taxes. Please refer to this link:
http://www.payroll-taxes.com/PayrollTaxes/supplemental_states.htm
An Example for the State of Maryland below shows the differences of the State Supplemental Tax results when the ‘FLAT’ or ‘CURRAGG’ tax methods are used.
Maryland GEO: 24-001-1713506 Allegany
Paid with Regular Wages
Paid at Different Time than Regular Wages
Add to regular wages and Withhold on total
Withhold at 6.25% plus rate applicable to county of residence
Or Add to regular wages, compute tax on total, and Subtract tax withheld on regular wages
• Local Level Supplemental Tax Method uses the same State Level Supplemental Tax Method
At line 234 removed 22 lines
For Example: State of Maryland:
1) Supplemental is Paid with Regular Wages, when SSP Method = ‘Flat Percent Method’
- this actually uses Method ‘Paid at Different Time than Regular Wages’
Maryland Sup Rate 916.96 x 6.25% = 57.31
Local Rate for Allegany County, MD 916.96 x 0.0305 = 27.97
= 85.28 : PC 6052
Res SIT + Res Supp Tax 214.07 + 85.28 = 299.35 Note: Higher than ‘CURRAGG’ method
2) Sup is Paid with Regular Wages, when SSP Method = ‘Current Aggregation’
This page (revision-22) was last changed on 26-Nov-2021 10:22 by mmcfarlandTop