If we code supplemental wages as bonus or severance, do we have to tax at a bonus rate?
Md Ariful Islam
বিএসসি(সিএসই)
,
এমবিএ(মার্কেটিং)
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Dr. Md Rushad Rahman
এমবিবিএস(আরপিএমসি)
,
পিজিটি(মেডিসিন)
If you code supplemental wages separately from regular wages, you are not required to withhold tax at the supplement wage rate of 22%; however you do need to use one of the methods described in the article above. You can also find an explanation of these methods in the IRS Publication 15 (Circular E), in the Supplement Wage section of the publication.
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