Percent Override and Supplemental Tax Rates

• Employees set up with a Withholding Method: The Percent Override on the Employee Payroll Taxes tab calculates differently for supplemental versus regular withholding earnings.
• Earnings in a tax Calc Base using Supplemental Withholding rates behave differently than those using Regular Withholding.
• 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 apply the Percent Override on supplemental earnings, assign an earning code set up with Regular Tax rates.

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