Supplemental Wage Payments

Date / Time

Venue

This is a virtual event, accessible on-line and over phone. Access instructions will be provided after registration.

Description

Supplemental pay includes compensation such as overtime premiums, bonuses, severance pay and fringe benefits. It is an important component of employee compensation but has its own set of withholding rules. This webinar will help attendees distinguish between supplemental wage payments and regular wage payments and help them identify wage payments that are neither supplemental nor regular. It will detail methods used to compute withholding on supplemental pay and discuss the application of the rules and methods to specific payments and situations. 

This fast paced and detailed webinar will discuss optional methods and when they may be used as well as the effect of Form W-4 claims and regular pay period on supplemental pay withholding.

Topics covered include: 
• Why Congress distinguished supplemental pay and enacted special rules for computing withholding.
• Definitions and examples of supplemental and regular compensation including optional treatment and exceptions.   
• Detailed description of methods used to compute withholding on supplemental pay including examples. 
• When optional methods may be elected and when they may not. 
• When the mandatory flat rate method must be used and situations in which the employer has options. 
• The effect of Form W-4 claims and regular pay period on supplemental pay withholding.
• Recordkeeping required for compliance with mandatory flat rate withholding rules. 
• Penalties for failure to withhold and penalty avoidance.
• Application of the rules to specific examples of supplemental pay situations. 

Educational Objectives:
• Distinguish between supplemental wage payments and regular wage payments and identify wage payments that are neither supplemental nor regular.
• Compute withholding using each of the methods specified for supplemental wages.
• Apply critical options and exceptions to the general rules.
• Identify and apply the rules to common and not so common examples of supplemental pay. 
• Apply the rules apply to severance pay, deferred compensation, and other post termination payments.
• Determine when the 22% flat rate may be used and when it is not allowed.
• Determine when the 37% flat rate must be used and how to apply it to supplemental wage payments.
• Avoid failure to withhold penalties.

Who should attend this program?
Payroll professionals.

Presenter

Pat Haggerty
  • Tax Practitioner

Pat Haggerty is a tax practitioner, author, and educator. His work experience includes non profit organization management, banking, manufacturing accounting, and tax practice. He began teaching accounting at the college level in 1988. He is licensed as an Enrolled Agent by the U. S. Treasury to represent taxpayers at all administrative levels of the IRS and is a Certified Management Accountant. He has written numerous articles and a monthly question and answer column for payroll publications. In addition, he regularly develops and presents webinars and presentations on a variety of topics including Payroll tax issues, FLSA compliance, and information return reporting.

Continuing Education

Credits:
1.0 RCH
Level:
Basic
Production Date:
05/29/2018
Price: $224.00