January 12, 2018

Notice from the IRS on Supplemental Wages and Cartus Webinar Recording

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Jan

12

Notice from the IRS on Supplemental Wages and Cartus Webinar Recording

Posted by: Wendy Kosach, Senior Vice President, Relocation Accounting Services

The U.S. Internal Revenue Service (IRS) has just announced the supplemental withholding rates for 2018.

  • The rate is 22% for supplemental wages paid to an individual during a calendar year that are less than or equal to $1 million. The 2017 rate was 25%.
  • The rate is 37% for supplemental wages paid to an individual during a calendar year that are more than $1 million. The 2017 rate was 39.6%

If you use the supplemental rate for gross up calculations, Cartus will use this new rate for these gross up calculations, unless we are directed to use another rate.

For updated 2018 withholding tables, visit the IRS site for details: https://www.irs.gov/pub/irs-pdf/n1036.pdf.

Additional Resource

If you didn’t get a chance to attend our webinar on the U.S. Tax Cuts and Jobs Act (TCJA), Listen to the Webinar Recording. The webinar was hosted by David S. Oltman, Chief Compliance Officer at Ineo, LLC, and reviewed the new tax law, answered questions we’ve been receiving, and outlined the specific questions that need to be answered in order to make updates to your relocation policy.

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Posted By

Wendy Kosach

About Wendy

Wendy has been with Cartus for 25 years, with 15 years in Relocation Accounting. She is responsible for client payroll reporting and customer expense processing.

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