California Bonus and Stock Option Payments

California taxes the withholding rates on bonus and stock option payments at a different supplemental withholding rate than other earnings.

To support employees that earn these kinds of payments, you need to perform some additional configuration.

What you need to do	How you do it
Deploy the Element Information extensible flexfield	Use the Extensible Flexfields task.
Set the alternate rate on your Supplemental Earnings element	Use the Elements task.

The following sections describe these steps in detail.

Element Information Extensible Flexfield

Before you can create or modify Supplemental Earning elements, you must deploy the Element Information extensible flexfield.

1. Start the Extensible Flexfields task.

2. Search for the pay%element% flexfield code.

3. Select the search result, and click Deploy Flexfield.

4. Click Done.

Note: You can override the supplemental tax method only for supplemental earnings configured as Process separately, but pay with other earning. California is the only state available for selection.

Supplemental Earnings Elements

To set the alternate rate on a Supplemental Earnings element:

1. Start the Elements task.

2. Create the element, using the Supplemental Earnings primary classification and Bonus secondary classification.

3. Complete and save the element.

   In addition to saving the element, the task creates multiple indirect elements to support it.

4. Restart the Elements task, and search for the element you just created, using a wildcard at the end of the name.

   This returns the element and all associated indirect elements.

   For example, for an element named "CA Supplemental Bonus", you might use a string of CA Supp%.

5. Select and edit the Calculator indirect element.

6. On Element Details, in Element Information EFF, expand Calculation Method.

7. Enter the following.

   Field name	What you enter
   State	CA
   Supplemental Tax Method	Alternate Flat Rate

8. Click Done.