# Supplemental wages

> Supplemental wages — Pay that isn't regular wages — bonuses, commissions, overtime, severance, back pay. Federal income tax on it may be withheld at a flat 22% for 2026, and must be at 37% on an employee's supplemental wages over $1 million in the year.

Source: https://lopifi.com/glossary/supplemental-wages
Part of: Lopifi — US GAAP books on autopilot, checked by a CPA (https://lopifi.com)

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**What is supplemental wages?** In accounting, supplemental wages means pay that isn't regular wages — bonuses, commissions, overtime, severance, back pay. Federal income tax on it may be withheld at a flat 22% for 2026, and must be at 37% on an employee's supplemental wages over $1 million in the year.

## Words this system refuses for it

- bonus tax

- **Category:** Payroll
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)