![]() The supplemental rate of withholding is 6.5%. There is no supplemental rate of withholding. The supplemental withholding rate is 10.23% on bonuses and stock options and 6.6% on other types of compensation (e.g., overtime pay, commissions, sales awards, and vacation pay). ( Arkansas Department of Finance and Administration, Withholding Tax, p. ![]() The supplemental withholding rate is 5.9%. Under SB 1828 and effective Janu, the law createsa two-tier individual income tax rate structure of 2.55% and 2.98% depending on filing status and taxable income and, if general fund revenue thresholdsĪre met, a reduced two-tier individual income tax rate structure of 2.53% and 2.75% or a 2.5% tax rate beginning in 2023. 3.)Įffective January 1, 2021, the highest marginal tax rate is 4.5% plus a 3.5% surcharge on income exceeding $250,000 ($500,000 for married and head of household). ( Withholding Tax Tables and Instructions for Employers and Withholding Agents, p. The Ohio Department of Taxation has not yet issued revised withholding instructions.)ģ.07% plus employee unemployment insurance tax rate of 0.06% and local tax rate. Use the rate at the bottom of the local tax table 3.2% for residents of Maryland working in Delaware and other nonreciprocal statesġ1.70% (New York City is 4.25%, Yonkers resident is 1.95975%, Yonkers nonresident is 0.50%.)ĥ.009% (Note that HB 110 reduced Ohio's individual income tax rates by 3% retroactive to January 1, 2021. Last revision date of income tax withholding publication/tablesĥ.1% ( SB 1828 reduces the highest tax rate to 4.5% effective January 1, 2022)Ħ.60% and 10.23% on bonus and stock options The chart also shows if the state has a flat tax rate, meaning only one rate of tax applies regardless of the wages paid, or alternatively, the highest marginal withholding rate according to the state's latest computer withholding formula.Ĭhanges in tax rates from Decemare highlighted in yellow in the attached pdf. The state supplemental income tax withholding rates currently available for 2021 are shown in the chart below. Note that the flat 37% rate applies even if an employee has submitted a federal Form W-4 claiming exemption from federal income tax withholding. Where allowed, the supplemental rate greatly simplifies income tax withholding calculations on irregular payments such as bonuses, equity compensation and separation pay.Įmployers may optionally use a federal flat rate of income tax federal withholding of 22% on supplemental wages up to $1 million for the year however, a mandatory flat rate of 37% applies to supplemental wages over $1 million. Like the federal supplemental income tax withholding rate, states/territories may also allow for an optional flat percentage of income tax withholding for wages that are in addition to regular pay. To assist you in reviewing your state income tax withholding rates for 2022, beginning on the following page is a chart of the most recent income tax withholding tables published by states and US territories and the supplemental withholding rate if allowed. The existence of a fiduciary duty does not prevent the rise of potential conflicts of interest.2022 state income tax and supplemental withholding rates (preliminary as of December 22, 2021) There are no guarantees that working with an adviser will yield positive returns. Working with an adviser may come with potential downsides such as payment of fees (which will reduce returns). All investing involves risk, including loss of principal. ![]() This is not an offer to buy or sell any security or interest. We do not manage client funds or hold custody of assets, we help users connect with relevant financial advisors. ![]() SmartAsset does not review the ongoing performance of any Adviser, participate in the management of any user's account by an Adviser or provide advice regarding specific investments. SmartAsset receives compensation from Advisers for our services. SmartAsset's services are limited to referring users to third party advisers registered or chartered as fiduciaries ("Adviser(s)") with a regulatory body in the United States that have elected to participate in our matching platform based on information gathered from users through our online questionnaire. Securities and Exchange Commission as an investment adviser. SmartAsset Advisors, LLC ("SmartAsset"), a wholly owned subsidiary of Financial Insight Technology, is registered with the U.S. ![]()
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