Understanding Supplemental Wage Payments: Common Withholding Guidelines

February 2 at 1:00 - 2:00 pm EST Credits HR Certification Institute, AIPB, SHRM, NASBA

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Know when wage payments should be classified as supplemental and the applicable withholding rules that apply.

On January 1, 2020, the overtime regulations put in place by the United States Department of Labor (U.S. DOL) allowed employers to use nondiscretionary bonuses and incentive payments (including commissions) to satisfy up to 10% of the new required exempt salary level of $684 per week (or $35,568 per year for a full-year worker). That is one example of the many ways supplemental wages can be an excellent resource for employers to incentivize employees as well as augment their wages. If managed correctly, supplemental wages, as part of a total compensation package, can be an effective talent recruiting, staff retaining, and marketing tool. As with all human capital management, an appreciated and valued employee is a happy employee. Happy employees provide better service to clients. Better serviced clients stay clients.

Learning Objectives

  • You will be able to define supplemental wages and how they are different from regular wages.
  • You will be able to describe the process for correctly withholding federal income taxes.
  • You will be able to explain how you can gross-up an employee’s pay to cover the taxes due and the required taxes if you choose to do so.
  • You will be able to discuss how you determine the taxable amount of a supplemental wage payment.

Agenda

Defining Supplemental Wages
  • The Internal Revenue Service (IRS) Publication 15-B
  • The United States Department of Labor (U.S. DOL)
  • The Employee Handbook
Calculating the Withholding Amount
  • Cash vs. Fair Market Value
  • Determining the Taxable Amount
  • Determining Rate
Best Practices
  • Grossing-up Taxes
  • Other Considerations (Pensionable, Other Benefits)
  • Communicating to the Employee

Who should attend?

This live webinar is designed for human resource and payroll professionals, benefits managers, business owners and managers, controllers, CFOs, accountants, and bookkeepers.

In Partnership With Lorman


Your Instructor


Tricia Richardson
Tricia Richardson
  • President, Purposed Payroll Professional
  • Human capital management consultant, payroll and human resources best practices, regulatory compliance audits
  • Conducts regular webinars on all topics related to human capital management and payroll processes, regulatory compliance, and best practices
  • Regular contributor to Paytech Magazine
  • National speaker for the American Payroll Association, Payroll Certification Study Group Leader, Human Resource Certification Study Group Leader
  • Bachelor’s degree in management studies with a minor in psychology, University of Maryland University College

Credits

MP3 Download

This program does NOT qualify, nor meet the National Standard for NASBA accreditation.

OnDemand Course

This course was last revised on February 11, 2021.

  • AIPB 1.5
  • This program is acceptable for 1.5 CPEC(s) towards the CB designation through the American Institute of Professional Bookkeepers (AIPB).
  • CPP/FPC
  • Lorman Education Services is an approved provider through the American Payroll Association. This seminar is approved for 1.5 RCHs. PLEASE NOTE: To receive credit through the American Payroll Association for this program you MUST attend the program in its entirety, complete all progress checks and pass the final exam. You cannot obtain credit if you have already completed this course in its live version.
  • HRCI Approved ProviderHR Certification Institute 1.5
  • This E-Learning program has been approved for 1.5 (General) recertification credit hours toward aPHR(TM), aPHRi(TM), PHR®, PHRca®, SPHR®, GPHR®, PHRi(TM) and SPHRi(TM)recertification through HR Certification Institute® (HRCI®). For more information about certification or recertification, please visit the HR Certification Institute website at www.hrci.org.
  • SHRM-CP/SHRM-SCP Preferred ProviderSHRM 1.5
  • Lorman Education Services is recognized by SHRM to offer Professional Development Credits (PDCs) for the SHRM-CPSM or SHRM-SCPSM. This program is valid for 1.5 PDC(s) for the SHRM-CP or SHRM-SCP.

To earn each credit Lorman offers through the OnDemand learning platform, you need to watch 100% of the program. Also, for certain credits you will need to fulfill additional requirements which will be displayed on the "credits" tab when viewing the course.

  • Those applying for AIA and HRCI must view 100% of the program and answer the questions following the program.

This program does NOT qualify, nor meet the National Standard for NASBA accreditation.

Live Webinar Registration

  • AIPB 1.0
  • This program is acceptable for 1.0 CPEC(s) towards the CB designation through the American Institute of Professional Bookkeepers (AIPB).
  • CPP/FPC (Pending)
  • This seminar has been submitted to APA for RCH approval. PLEASE NOTE: To receive credit through the American Payroll Association if approved, you MUST use the streaming option and enable (and complete) the required progress checks.
  • HRCI Approved ProviderHR Certification Institute 1.0
  • This program has been approved for 1.0 (General) recertification credit hours toward aPHR(TM), aPHRi(TM), PHR®, PHRca®, SPHR®, GPHR®, PHRi(TM) and SPHRi(TM)recertification through HR Certification Institute® (HRCI®). For more information about certification or recertification, please visit the HR Certification Institute website at www.hrci.org.
  • SHRM-CP/SHRM-SCP Preferred ProviderSHRM 1.0
  • Lorman Education Services is recognized by SHRM to offer Professional Development Credits (PDCs) for the SHRM-CPSM or SHRM-SCPSM. This program is valid for 1.0 PDC(s) for the SHRM-CP or SHRM-SCP.
  • National Registry of CPE SponsorsCPE 1.2 including Personnel/HR 1.2
  • Lorman Education Services is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its web site: www.nasbaregistry.org. CPE Credit: Maximum Credit Hours: 1.2 each session (based on a 50 minute credit hour). You must attend at least 50 minutes to obtain credit. Field of Study: Personnel/HR for 1.2 hours. Prerequisite: . Level of Knowledge: Intermediate. Teaching Method: Seminar/Lecture. Advance Preparation: None. Delivery Method: Group Internet Based. Please refer to the information in this brochure for outline, course content and objectives. Upon completion of this course, you will receive a certificate of attendance. Final approval of a course for CPE credit belongs with each state's regulatory board. Please note: In order to receive CPE credit for this course you MUST use the streaming audio option, as well as enable and complete the required progress checks.

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