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Supplemental Pay Definition

November 11, 2015

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Term Definition
Compensation that is other than an employee’s regular wages or salary. Supplemental pay can include bonuses, tips, cashed-out vacation or sick time, prizes, retroactive pay raises, and more.
Employers need to know the proper amount of income taxes to withhold from supplemental wages, which will depend on the nature of the supplemental pay.

Related Article:
What Is Supplemental Pay?

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