Percent Override and Supplemental Tax Rates

• Employees setup with a Withholding Method: Percent Override percentage on the Employee Payroll, Taxes tab, will calculate taxes differently for Earnings set to Supplemental Withholdings than for Earnings set to Regular Withholdings.
• Earnings that are selected on a tax's Calc Base with Withholding Type as Supplemental Withholding rates behave differently from Earnings set to Regular Withholdings.
• These Earnings will calculate the Supplemental Tax Rate plus the Override Percentage rate.

For Example: A Bonus of $100,000 with USFIT Percent Override = 40% and Supplemental Withholding 25%, will result in USFIT tax withholding $65,000.

To only withhold the Percent Override percentage on the Employees when paying earnings set to calculate Supplemental Tax rates, assign a different Earning Code that is setup on the tax with Regular Tax rates.

Note: If a state has multiple supplemental tax rates, another option is to override the tax amount on the Timecard.