[pps-news] DOS Codes for Payments Subject to Supplemental Tax Withholding Rate When Paid Separately

[Roberta Nardico]

May 7, 2010

 

 

TO:      All Departments

 

FR:      Payroll Office

 

RE:      DOS Codes for Payments Subject to Supplemental Tax Withholding Rate When Paid Separately

 

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This information is being sent to you as a reminder due to recent inquiries regarding the taxation of supplemental wages.  In accordance with the Internal Revenue Service (2010 Publication 15, Circular E, Employer's Tax Guide) and State of California Employment Development  (2010 DE 44 Revision 36 California Employer's Guide), wages made under these Description of Service codes (DOS) are always subject to the supplemental tax withholding rates when they're paid separately from the employee's primary pay schedule. 

 

When supplemental and regular wages are combined for the current month, the income tax withholding is figured on a single payment.   Withholding will be at the graduated rates based on marital status and allowances claimed on the W4.

 

I.    If the following DOS codes are paid separately, withholding for Federal tax is at a flat rate of 25% and 6.6% for State tax (no other percentages are allowed)

 

A.	SUMMER SALARY 

1.     ADL - Additional Compensation-UNEX

2.     OLS - Additional compensation-Teaching

3.     ACR - Addl Sum Comp -Research

4.     ARC - ASC-Res-Agency Capped

5.     AAC - ASC-Res-Abv Cap/Suppl

6.     ACA - Addl Summer Comp - Admin

7.     APA - ASC-Admin-Flat Amt

8.     SSC - ASC-Sum Sess- Amt-DCP

9.     SSG - ASC - Sum Sess -REG DCP

10.  ACM - Addl Summer Comp- Misc

11.  AMN - Addl Sum Comp-Misc-No DCP

12.  OEN - Addl Pay -One-11th

13.  AFN - ASC Misc Flat Rate-No DCP

14.  ACF - ASC Misc Flat Rate-DCP

 

B.	OVERTIME 

1.  OTP - Overtime Premium

2.  OTS - Overtime Straight

3.  OCT - On Call Time

4.  CMP - Comp Time Paid

5.  OTH - Overtime At Half

 

C.	OTHER 

            1.  LSI - Lump Sum Incentive

            2.  RIP - Relocation Incentive Pay

            3.  VTL - Voluntary Term-Lump Sum

            4.  VTS - Voluntary Term-Severance

            5.  ITL - Involuntary Term-Lump Sum

            6.  ITS - Involuntary TRM Severance

            7.  SAE - Severance-Active-Employee

            8.  EHA - Employee Housing Allowance

            9.  FHA - Faculty Housing Allowance

          10.  MV2 - Moving Expense AP

          11.  BXC - Academic Student Employee Childcare

          12.  MOV - Non Exclusive Move Expense-Pay

13.   PSZ - Staff Phys Shift Incentive

14.   LSP - Lump Sum Payment

15.   LSS - Lump Sum Payment (SX unit)

16.   LSB - Lump Sum - Base Payroll

17.   HON - Honorarium

18.   SEV - Severance Pay

19.   PTT - Terminal Trip Bonus Pay

20.   NDP - Nonqual Deferred Comp Plan

21.   SVE - Severance Pay-Executive

22.   SVM - Severance Pay-Health Science

23.   UNT - Uniform Allowance Taxable

24.   TVL - Temp Vacation Leave

25.   TVH - Temp Vac Hospital

26.   BAA - By Agreement Annuity

27.   PEI - In-Lieu-Endrsmt/3rd Party

28.   ETB - Emp Tips by Agreement

29.   ETR - Emp Tips Reported

30.   CEL - Cell Phone Expense

31.   CE2 - Cell Cash Allowance

32.   VSP - Voluntary Separation Program

33.   FCA - Fac Consulting - Flat Amount

34.   ACX - Add'l Comp-UNEX Flat Amount

      

      D.  TRM - Terminal Vacation Payment (supplemental tax withholding rate in effect whether the payment is paid separately or combined)   

 

 

II.   If the following DOS codes are paid separately, withholding for Federal tax is at a flat rate of 25% and 10.23% for State tax (no other percentages are allowed).

 

A.	 INCENTIVE/DEVELOPMENT AWARDS 

1.   TIA - Team Incentive Award

            2.   SRD - Staff Recognition Development Award

3.     PDA - Prof Development Award

4.     SPA - Special Performance Award

5.     NDI - Non Discretion Award SRDP

6.     SAP - Student Award Program

7.     LEA - Local Employee Award

8.     NDL - Non Discretion Award Local

9.     SAL - Student Award Program - Local

10.  TIL - Team Incentive Award Local

11.  PNZ - Physician Incentive Pay

12.  NCA - Non Cash Award

 

B.	BONUS 

            1.  BON - Bonus (hire & refer)  

            2.  ABP - Student Bonus - SRDP

            3.  ABL - Student bonus - Local

            4.  HBO - Hiring Bonus

            5.  RFB - Referral Bonus

            6.  SGB - Sign-On Bonus

 

C.	OTHER 

1.  TIP - Tail Ins Premium Payment

 

 

If you have any questions, please call the Payroll office at X1943.

 

Thank you, 

 

Roberta Nardico

Payroll Supervisor          

 

 

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