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- TAX MATTERS
Supplemental Wage Withholding Explicated
Please note: This item is from our archives and was published in 2008. It is provided for historical reference. The content may be out of date and links may no longer function.
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With Revenue Ruling 2008-29, the IRS analyzed nine scenarios for applying withholding rules to commissions, severance pay and other forms of supplemental wages under IRC § 3402, including proper application of the aggregate versus optional flat-rate methods. The guidance supersedes revenue rulings 67-131 and 66-294.