Setting up supplemental tax rate in payroll

Need to tax bonus, stipend or buyout using the supplemental tax rate

• Payroll
• Payroll Setup
• Pay Master
• Tax Tables
• Payroll Processing

First, you want to set the tax method on pay type.

1. Go to Pay Master. (Payroll > Payroll Setup > Pay Master)
2. Search for the bonus pay type. Click Update. Set the Tax Method field to S-Supplemental Rate.
3. Click Accept. 

You will also enter the supplemental rate on the tax tables.

1. Go to Tax Tables (Payroll > Payroll Setup > Income Tax Setup > Tax Tables)
2. Search for your federal tables. The federal tables have State Code set to XX.
3. For each table, click on the Calc option in the ribbon.
4. Click Update. Enter the percentage for the Supplemental Rate. Click Accept.