State Supplemental Earnings

Supplemental earnings include bonuses and awards. Most states do not have a separate withholding rate for supplemental earnings, but if one does, you must set up the rates in that State Supplemental Earnings window. On the Payroll tab, click Tax Setup > State Tax > State Supp. Tax Setup.

To apply the rates set up in this window, in the Master Paycheck grid of the employee's Wages/Master Paycheck window, select Supplemental Earn or Bonus in the Type column. If you don't set up rates in this window, the state income tax is calculated on supplemental earnings the same way it is calculated for regular wages.

Note: If your state income tax is a percentage of the federal tax, the program does not use any supplemental earnings rates to calculate state tax, even if you set up rates in this window.

State Supplemental Earnings Field Information


The lower limit of the supplemental earnings range.

But Not Over

The upper limit of the supplemental earnings range.

% Withhold

The percentage of gross withheld if the supplemental earnings fall in this range.