To calculate the Employee Withheld balance, payroll runs use the regular or supplemental method. At the Federal level, the cumulative withholding method is also available.
| Regular withholding (also called Percentage or Annualized Wages withholding) | The default withholding method of Regular runs. These payroll runs process employees once each period to produce their regular earnings for time worked and may also process supplemental earnings and final pay for terminating employees. Regular runs apply supplemental withholding to any supplemental earnings whose input value Tax separately has the entry Yes. See: Supplemental Withholding in Regular Runs |
| Supplemental withholding | The default withholding method for Federal and state income taxes in Supplemental runs. You initiate these runs whenever necessary to process supplemental earnings and final pay for terminating employees. You enter in the Federal Tax Rules window, the supplemental withholding calculation method a GRE uses. Supplemental payroll runs act like regular runs when processing final pay, using regular withholding except for any supplemental earnings with an entry of Yes in its Tax Separately input value. |
| Cumulative withholding | Can apply only to employees whose earnings occur unevenly over the year; it can be beneficial for such employees. Regular and supplemental runs both use cumulative withholding in calculating Federal taxes for the regular earnings and commissions of those employees who qualify for and have requested this method. You mark employee assignments for cumulative withholding when entering tax information for individual employees. |