EPY: Does the Two Tier Supplemental Tax Special Accumulator Keep Track Employee Supplemental Payments Across Companies?
(Doc ID 640416.1)
Last updated on AUGUST 19, 2021
Applies to:PeopleSoft Enterprise HCM Payroll for North America - Version 9.1 and later
Information in this document applies to any platform.
The IRS has made the determination that if an employee receives supplemental wages in excess of one million dollars from an employer in a calendar year, the excess of the supplemental wages over one million dollars is subject to mandatory income tax withholding at the highest income tax rate. The highest income tax rate is currently 35 percent. In determining whether an employer has reached the one million dollar threshold for an employee, supplemental wage payments from all businesses under common control and from agents will be taken into account.
Is their functionality within PeopleSoft that complies with this requirement?
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