Hello,
This seems complicated; and I am hoping I can find an answer.
Does anyone currently have a 3rd party (like Fidelity) that issues 457b checks and also does the W2 and 941 reporting for its non-qualified employees? And if so how do you handle supplemental wages paid between Fidelity and Lawson looking for YTD supplemental wages in excess of 1 million? Because supplemental wages in excess of 1 million need to be taxed at 39%; but if there's some 3rd party wages that are not stored in Lawson; how would Lawson know to apply a 39% tax (via BSI)?
Example:
Lawson has paid YTD supplemental wages of $999,000.
Fidelity has paid YTD non-qualified supplemental wages of $10,000.
The YTD combination of supplemental wages is in excess of 1 million; therefore the excess should be taxed at 39%.