Supplemental wages

Pay outside your regular paycheck, bonuses and many RSU vests, with special withholding rules.

include payments like bonuses, commissions, and many equity vests that are not part of your normal salary run.

IRS rules let employers use a flat federal rate on (Publication 15). That rate is a shortcut, not your final tax rate.

vests are often processed as , which is why you may see a flat percentage rather than your usual paycheck math.

Related terms

Educational definition only. Your grant documents, employer payroll, and tax forms control your situation.