California Supplemental Tax Rate for Commissions Should Be 6.6% and Bonus 10.23% (Doc ID 756757.1)

Last updated on SEPTEMBER 22, 2023

Applies to:

Symptoms

Find Bonus earnings for a California employee, the state income tax (SIT) is not withholding at 10.23%

Steps to Reproduce:
The issue can be reproduced at will with the following steps:

1. Tested the following and found these results:

Supplemental element with a classification of supplemental earnings and a category of Bonus.

• • State supplemental tax method of Alternate Flat Tax deduction comes out at 10.23 percent (which is correct)
  • State supplemental tax method of Flat Tax deduction comes out at 6.6 percent (which is incorrect should be 10.23 percent)
  • State supplemental tax method of Aggregation Tax deduction comes out at 12 percent (which is incorrect should be 10.23 percent)
  • State supplemental tax method of Tiered Flat Rate deduction comes out at 6.6 percent (which is incorrect should be 10.23 percent)
  • Tested all the available methods on the organization and got the same results as above (6.6 percent for all)

Supplemental element with a classification of supplemental earnings and a category of commissions

• • State supplemental tax method of Alternate Flat Tax deduction comes out at 10.23 percent (which is incorrect, should be 6.6 percent)
  • State supplemental tax method of Flat Tax deduction comes out at 6.6 percent (which is correct)
  • State supplemental tax method of Aggregation Tax deduction comes out at 12 percent (which is incorrect should be 6.6 percent)
  • State supplemental tax method of Tiered Flat Rate deduction comes out at 6.6 percent (which is correct should be 6.6 percent)
  • Tested all the available methods on the organization and got the same results as above (6.6 percent for all)

Changes

Cause

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