If a levy issued in a prior year is still in effect, use the current year Pub. 1494 to compute the exempt amount. Also see section 13 for directions on how to use the tables for employees claiming more than 10 allowances. Employers with automated payroll systems will find the two alternative formula tables and the two alternative wage bracket percentage method tables in Pub. If an employee wants additional tax withheld, have the employee show the extra amount on Form W-4.
Supplemental wages are compensation paid to an employee in addition to the employee's regular wages.
They include, but are not limited to, bonuses, commissions, overtime pay, accumulated sick leave, severance pay, awards, prizes, back pay and retroactive pay increases for current employees, and payments for nondeductible moving expenses. Other payments subject to the supplemental wage rules include taxable fringe benefits and expense allowances paid under a nonaccountable plan. If you pay supplemental wages with regular wages but do not specify the amount of each, withhold income tax as if the total were a single payment for a regular payroll period. Add the supplemental and regular wages for the most recent payroll period this year. Then figure the income tax withholding as if the total were a single payment.