Asked by Isabella Pucci on Jul 04, 2024
Verified
Supplemental wages are only subject to FICA taxes and federal withholding taxes and are not subject to SUTA or FUTA taxes.
Supplemental Wages
Additional compensation received beyond one's regular wages, such as bonuses, commissions, or overtime pay, often subject to different tax withholding rates.
FICA Taxes
Taxes levied on both employees and employers to fund Social Security and Medicare.
SUTA Taxes
State Unemployment Tax Act taxes are state unemployment taxes employers are required to pay to provide funds for paying unemployment compensation to laid-off employees.
- Learn the taxation aspects of supplemental wages.
Verified Answer
IZ
Izzan ZikriJul 05, 2024
Final Answer :
False
Explanation :
Supplemental wages are subject to FICA taxes, federal withholding taxes, SUTA (State Unemployment Tax Act) taxes, and FUTA (Federal Unemployment Tax Act) taxes.
Learning Objectives
- Learn the taxation aspects of supplemental wages.