The Basics of Supplemental Pay Taxation

Event: Live Webinar
Event Date: May 30, 2024
Presenter: Vicki M. Lambert
Event Time: 11 am EST
Duration:90 Minutes


The Tax Cuts and Jobs Act of 2017 changed the supplemental rate for the first time in many years. However, it did not change the basic requirements for withholding on supplemental wages as laid out by the IRS. And managing the taxation of supplemental pay can be a complex challenge fraught with errors and quite costly to correct. One wrong step by payroll and the company could face severe penalties for everything from failure to withhold the correct tax (bad enough!) to actual wage theft (rare but can happen). This webinar covers the basics for payroll professionals on how to properly tax any supplemental payment including bonuses, severance pay and fringe benefits.

Learning Objectives

  • Understand and be able to distinguish between supplemental wage payments and regular wage payments
  • Determine the proper withholding using each of the methods specified by the IRS for supplemental wages.
  • Identify and apply the rules to common and not so common examples of supplemental pay.
  • Determine when to use each of the different supplemental rates correctly
  • Understand the effect of Form W-4 and the payroll period have on supplemental pay withholding

Session Highlights:

  • Definitions and examples of supplemental pay
  • Detailed calculations on calculating the proper supplemental tax to withhold
  • What options are available, when may they be elected, and who decides
  • Record keeping requirements for compliance with mandatory flat rate withholding rules

Who Should Attend

  • Payroll Executives
  • Managers
  • Administrators
  • Professionals
  • Practitioners
  • Entry Level Personnel
  • Human Resources Executives
  • Accounting Personnel
  • Business Owners
  • Executive Officers
  • Operations and Departmental Managers
  • Lawmakers
  • Attorneys
  • Legal Professionals
  • Any individual or entity that must deal with the complexities and requirements of Payroll compliance issues

Vicki M. Lambert

Vicki M. Lambert, CPP, is President and Academic Director of The Payroll Advisor™, a firm specializing in payroll education and training. The company’s website offers a payroll news service which keeps payroll professionals up-to-date on the latest rules and regulations. With nearly 40 years of hands-on experience in all facets of payroll functions as well as over three decades as a trainer and author, Ms. Lambert has become the most sought-after and respected voice in the practice and management of payroll issues. She has conducted open market training seminars on payroll issues across the United States that have been attended by executives and professionals from some of the most prestigious firms in business today. A pioneer in electronic and online education, Ms. Lambert produces and presents payroll related audio seminars, webinars and webcasts for clients, APA chapters and business groups throughout the country. Ms. Lambert is an adjunct faculty member at Brandman University in Southern California and is the instructor for the American Payroll Association’s “PayTrain” online program also offered by Brandman University..