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How much tax should be withheld from supplemental wages?

April 26, 2017supplemental tax wages

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How much tax should be withheld from supplemental wages?

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The flat Federal income tax withholding rate remains at 25%. (Separate rules apply to wages over $1,000,000. Please contact us if this applies.) All supplemental wages must also be included in calculating Medicare and Social Security taxes. Supplemental wages include bonuses, overtime pay, severance pay and other nonperiodic payments.