10 July 2017 Revised state supplemental income tax withholding rates for 2017 This update reflects changes to the state supplemental income tax withholding rates for Illinois and Kansas. Similar to the federal supplemental income tax withholding rate of 25% (39.6% for supplemental wages exceeding $1 million), most states also allow for a flat percentage of income tax withholding for wages that are in addition to regular pay. Where allowed, the supplemental rate greatly simplifies income tax withholding calculations on irregular payments such as bonuses, equity compensation and separation pay. For more information about the federal supplemental withholding rate see IRS Publication 15, pg. 18. See the Attachment below for the state supplemental income tax withholding rates that apply in 2017. Document ID: 2017-1094 |
