How Tax Withholdings are Determined in One-Time Payments

Tax Method

Scheduled Payruns

Pay Runs that are scheduled either daily or per pay period use the 'Aggregation' tax method for determining the tax rate for the Employee. 

One-Time Payments

One-Time Payments allow the User creating the One-Time Payment to choose the tax method used to calculate the tax rate.  

• Aggregation: Calculates taxes based on the total of the employee's current and previous payroll payments. The tax is determined by applying a rate to the combined total and then subtracting the taxes already withheld from the prior payment. The remaining amount represents the taxes withheld on the current paycheck. For more information, refer to the current IRS Publication 15 Circular E.

• Supplemental: Uses the current flat tax rate of 22%. For more information, refer to the current IRS Publication 15 Circular E.

  • Previously listed as ‘Flat Rate’.

• Employee Elections: Will tax the payment as a regular pay run payment, using the employee's tax forms and withholding information on file to calculate taxes.

Employee Tax Withholding Configuration

The Federal, State, and Municipal tax withholdings for an Employee can be reviewed and updated on the Taxes tab of their Employee Record.