Employers may determine the amount of withholding by using wage bracket tables or by using the computer formula, which is based on a flat rate of 5 percent and a standard deduction, which is to be adjusted annually
If supplemental wages are paid at the same time as regular wages, supplemental wage payments are treated as if the two payments are a single wage payment for the regular pay period and withholding is determined on the total amount at the flat rate of 5%. If paid at a different time, the supplemental wages may be aggregated with the regular wage payment for the current pay period, or for the preceding pay period.
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