Supplemental Wages

• Supplemental Wages
  Supplemental wages, as defined for federal income tax purposes, are treated as supplemental wages for North Dakota income tax purposes. This includes bonuses, commissions, overtime pay, payments for accumulated sick leave, severance pay, awards, prizes, back pay, and any other payment that is considered a supplemental wage for federal income tax withholding purposes. The method for calculating the amount of North Dakota income tax to withhold from supplemental wages is similar to the federal income tax withholding method. The amount of North Dakota income tax to withhold from supplemental wages depends on whether the supplemental wages are identified as a separate payment from regular wages.
  
• Supplemental wages combined with regular wages---If supplemental wages are combined and paid with regular wages, and the amounts of each are not separately identified, calculate the amount of North Dakota income tax to withhold from the combined amount using any of the regular methods allowed---i.e., Methods 1, 2, or 3.

• Supplemental wages identified separately from regular wages---If supplemental wages are paid separately from regular wages (or are combined and paid with regular wages but each are separately identified), calculate the amount of North Dakota income tax to withhold using the applicable method below:
  
• 1. If North Dakota income tax was withheld from the regular wages, calculate the amount of North Dakota income tax to withhold from the supplemental wages in one of the following ways: 
     (a) Multiply the supplemental wages by 3.44% (.0344). 
     (b) Add the supplemental wages to the regular wages for the most recent payroll period. Then calculate a tentative withholding amount on this total amount using any of the regular methods allowed---i.e., Methods 1, 2, or 3. From this tentative withholding amount, subtract the amount of North Dakota income tax already withheld (from the regular wages). The result is the amount to withhold from the supplemental wages.
     
  2. If North Dakota income tax was not withheld from the regular wages, use the method described above in 1(b).