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.
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.