Supplemental Wages Law and Legal Definition

Supplemental wages is the payment received by employees other than their regular pay, such as bonuses, commissions, and severance pay. In certain circumstances, income tax may be withheld from such payments at a flat rate. Supplementary wages may be paid at the same time as ordinary wages or at any other time. It also includes awards, back-pay, overtime pay, paid time off payout, and retirement incentive.