offcycle paycheck tips

WholeCakes2 — Sun, 21 Sep 2025 06:39:11 GMT

i just processed the offcycle paycheck tips using "paycheck tip" column for my team. After adding the tip amounts for each, and processing it, i just noticed the federal income tax is much higher than regualr paychecks on each person's paystub. Is this normal?

Re: offcycle paycheck tips

Donnie-M — Mon, 06 Feb 2023 14:35:50 GMT

@WholeCakes2 Yes, if you did it as supplemental income then it was ran at 22% instead of the w-4 rate. You can change this I believe but here is the exact verbage:

Select the Payment Type that applies to the payment:
- Regular Pay will calculate taxes based on the tax rates and W-4 information at the time the off-cycle payment is sent.
- Bonus Pay or Other Supplemental Pay will calculate taxes using the federal supplemental withholding rate of 22%. To learn more about withholding rates, refer to IRS Publication 15 and your state’s employer’s tax guide."

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offcycle paycheck tips

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