How Supplemental Earnings Are Calculated for Regular Runs in the US

During a Regular payroll run, the payroll process can use different taxation methods when processing supplemental earnings.

What Settings Affect Earnings Calculations

The state of the person's residence or employment can determine how the payroll process calculates their taxes.

How the Payroll Process Calculates the Taxes

The payroll process performs these steps.

1. It attempts to use the aggregation calculation method.

2. If that method isn't applicable for the employee's work or residence state, it does one of the following.

   • For Georgia, it uses the tiered flat rate tax method.

   • For Ohio, it uses the aggregation tax method.

   • For all other states, it uses the Vertex default method.

For further info, see the Vertex Payroll Tax Calculation Guide for the United States.