[Mveca_usps] Supplemental Pay clarification

[Karen Wilson]

From: Speelman Wendy E [mailto:Wendy.E.Speelman at irs.gov]
Sent: Wednesday, December 17, 2014 12:08 PM
To: Deb Dinnen
Subject: supplemental wages

I would like to clear up some confusion over supplemental pay and to actually explain how it works.

I have included examples in with the supplemental slides to make it easier to understand..

In example 3 the calculation that is used will result in the same amount as example 1. The reason for this calculation is to allow the same amount of Federal Income tax to be withheld when the payments are separate as the amount would be if they were combined. If paying in separate checks and do not want to do the calculation in Ex. 3 then you can withhold at the flat 25%.

Please send out to everyone.
This is not "official written guidance". It is only a response to your question and may not be relied upon. Only "official written guidance" may be relied upon. "Official written guidance" may be obtained through the Private Letter Ruling or Technical Advice Memorandum process, for which there is a fee.
Wendy Speelman
Federal, State, & Local Government Specialist
P. O. Box 846
Mansfield, Ohio 44901
E-Fax 1-855-243-4023     Cell 419-512-1809
http://www.irs.gov/Government-Entities/Federal,-State-&-Local-Governments


Karen Wilson
EMIS Support Specialist
Miami Valley Educational Computer Association
330 E. Enon Rd., Yellow Springs, Ohio 45387
937-767-1468 ex 3115
Fax 937-767-1793
[Description: Description: C:\Users\reineke\Pictures\MVECA New logo.png] [bells2-150]

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