Okla. Admin. Code § 710:90-1-6

Current through Vol. 42, No. 6, December 2, 2024

Section 710:90-1-6 - Supplemental wages

(a)Treatment of supplemental wages combined with regular wages. An employer who pays supplemental wages combined with regular wages and does not specify or separate the amount of each should withhold Income Tax as if the total payment were a single payment for a regular payroll period. Supplemental wages include bonuses, commissions, overtime pay, vacation pay, sick leave pay, back pay, retroactive wage increases or payment for nondeductible moving expenses.

(b)Treatment of supplemental wages paid separately or combined in single payment. Supplemental wages which are paid separately or combined in a single payment and the amount of each is specified, are subject to withholding according to one of the following methods:

(1) If tax was withheld from an employee's regular wages, use one of these two methods for supplemental wages:

(A) Withhold at the highest applicable rate set out in 68 O.S. Section 2355(B)(1) for Oklahoma Income Taxes for the taxable year, or;

(B) Add the supplemental and regular wages for the most recent payroll period. Calculate the tax as if the total constitutes a single payment. Subtract the tax already withheld from the regular wages. Withhold the remaining tax from the supplemental wages.

(2) If tax was not withheld from an employee's regular wages, the provisions set out in (1)(B) of this subsection should be used. This situation would occur, for example, when the value of the employee's withholding allowances claimed is more than the wages.

(c)Treatment of overtime, vacation, and sick pay. Overtime pay, vacation pay, and sick pay are subject to Withholding Tax as if a regular wage payment. If paid in addition to the regular wage, it is considered a supplemental wage.

Okla. Admin. Code § 710:90-1-6

Amended at 10 Ok Reg 3873, eff 7-12-93; Amended at 11 Ok Reg 3529, eff 6-26-94; Amended at 16 Ok Reg 2674, eff 6-25-99; Amended at 19 Ok Reg 801, eff 2-19-02 (emergency); Amended at 19 Ok Reg 2445, eff 6-27-02; Amended at 26 Ok Reg 2376, eff 6-25-09

Amended by Oklahoma Register, Volume 36, Issue 22, August 1, 2019, eff. 8/11/2019