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IRS Releases Final Regulations on Flat-Rate Withholding on Supplemental Wages (PDF)
Miller & Chevalier for the American Benefits Council 
July 28, 2006 3 pages. Excerpt: Salary reduction deferrals (e.g., 401(k), 403(b), etc.) must be properly allocated to the gross regular wages or supplemental wages from which they are deducted before the amount of supplemental wages is determined. The IRS rejected the suggestion that employers should be allowed to take into account the gross amount of supplemental wages subject to pretax reductions. MORE >> |
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