Are pretax salary reduction deferrals included when determining the total amount of an employee's supplemental wages?

Author: Rena Pirsos, XpertHR Legal Editor

No, but pretax deferrals may be deducted from supplemental wage payments if required by the employer's plan documents. When determining the total amount of supplemental wages paid to an employee, any deferred amounts should be allocated to the employee's gross regular wage payments or to the gross supplemental wage payments from which the deferrals are deducted.