{"id":97049,"date":"2023-03-24T22:29:34","date_gmt":"2023-03-24T20:29:34","guid":{"rendered":"https:\/\/factorialhr.com\/blog\/?p=97049"},"modified":"2025-06-30T16:47:08","modified_gmt":"2025-06-30T14:47:08","slug":"supplemental-pay","status":"publish","type":"post","link":"https:\/\/factorialhr.com\/blog\/supplemental-pay\/","title":{"rendered":"Supplemental pay: Meaning and management tips"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">All employers have a duty to pay regular wages to their employees for their time. However, many also choose to offer <\/span><b>supplemental pay<\/b><span style=\"font-weight: 400;\">. Offering a benefits package that includes supplementary forms of compensation can help you <\/span><b>boost your employer brand so that you can attract and retain talent<\/b><span style=\"font-weight: 400;\">. In fact, many Americans claim that additional <\/span><a href=\"https:\/\/www.mckinsey.com\/industries\/financial-services\/our-insights\/insurance\/us-workplace-benefits-connecting-health-wealth-and-wellness\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">benefits are as important as salary &#8211; if not more so &#8211; when evaluating job opportunities<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But what is supplemental pay and how does it differ from other forms of employee benefits like healthcare and PTO?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In today\u2019s post, we are going to explore supplemental pay from the perspective of an employer. We will explain <\/span><b>what it is, what benefits qualify as supplemental pay, and how this form of compensation is taxed<\/b><span style=\"font-weight: 400;\">. We will also share a few <\/span><b>tips and best practices<\/b><span style=\"font-weight: 400;\"> to help you <\/span><b>effectively manage supplemental pay in your business<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><a href=\"https:\/\/factorialhr.com\/request-demo\"><img decoding=\"async\" class=\"alignnone wp-image-112901\" src=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2020\/03\/27125218\/ENG_Blog_banner_900x308_J_v1.0-2-300x103.png\" alt=\"banner-demo-performance\" width=\"548\" height=\"188\" srcset=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2020\/03\/27125218\/ENG_Blog_banner_900x308_J_v1.0-2-300x103.png 300w, https:\/\/factorialhr.com\/wp-content\/uploads\/2020\/03\/27125218\/ENG_Blog_banner_900x308_J_v1.0-2-768x263.png 768w, https:\/\/factorialhr.com\/wp-content\/uploads\/2020\/03\/27125218\/ENG_Blog_banner_900x308_J_v1.0-2.png 900w\" sizes=\"(max-width: 548px) 100vw, 548px\" \/><\/a><\/p>\n<p><b><div class=\"js-toc toc\">\n<p class=\"js-toc-title toc__title\">Table of Contents<\/p>\n<nav id=\"fac_toc_nav\" class=\"js-toc-nav toc__nav\" aria-label=\"Table of Contents\"><ol class=\"toc__list toc__list--level-1\"><li class=\"toc-heading-level-2\"><a class=\"toc__link toc-link-heading-1\" href=\"https:\/\/factorialhr.com\/blog\/supplemental-pay\/#what-is-supplemental-pay\" title=\"What is supplemental pay?\u00a0\" data-target-id=\"what-is-supplemental-pay\">What is supplemental pay?\u00a0<\/a><\/li><li class=\"toc-heading-level-2\"><a class=\"toc__link toc-link-heading-2\" href=\"https:\/\/factorialhr.com\/blog\/supplemental-pay\/#what-qualifies-as-supplemental-pay\" title=\"What qualifies as supplemental pay?\u00a0\" data-target-id=\"what-qualifies-as-supplemental-pay\">What qualifies as supplemental pay?\u00a0<\/a><\/li><li class=\"toc-heading-level-2\"><a class=\"toc__link toc-link-heading-3\" href=\"https:\/\/factorialhr.com\/blog\/supplemental-pay\/#who-should-report-supplemental-wages\" title=\"Who should report supplemental wages?\u00a0\" data-target-id=\"who-should-report-supplemental-wages\">Who should report supplemental wages?\u00a0<\/a><\/li><li class=\"toc-heading-level-2\"><a class=\"toc__link toc-link-heading-4\" href=\"https:\/\/factorialhr.com\/blog\/supplemental-pay\/#how-are-supplemental-wages-taxed\" title=\"How are supplemental wages taxed?\u00a0\" data-target-id=\"how-are-supplemental-wages-taxed\">How are supplemental wages taxed?\u00a0<\/a><\/li><li class=\"toc-heading-level-2\"><a class=\"toc__link toc-link-heading-5\" href=\"https:\/\/factorialhr.com\/blog\/supplemental-pay\/#how-to-effectively-manage-supplemental-pay\" title=\"How to effectively manage supplemental pay\u00a0\" data-target-id=\"how-to-effectively-manage-supplemental-pay\">How to effectively manage supplemental pay\u00a0<\/a><\/li><\/ol><\/nav><\/div><\/b><\/p>\n<h2><b>What is supplemental pay?<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Let\u2019s start with the basics: what does supplemental pay mean?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Supplemental pay, also known as supplemental wages, is a form of <\/span><b>monetary compensation<\/b><span style=\"font-weight: 400;\"> that you can offer your employees <\/span><b>in addition to their regular base salary<\/b><span style=\"font-weight: 400;\">. It can take a number of forms, including <\/span><b>overtime pay, bonuses, \u200d\u200daccumulated sick leave, severance pay, retroactive pay increases, equity pay, <\/b><a href=\"https:\/\/factorialhr.com\/blog\/pay-for-performance\/\" target=\"_blank\" rel=\"noopener\"><b>pay for performance<\/b><\/a><b> or any other additional compensation that you might offer an employee such as payouts for unused PTO\/vacation<\/b><span style=\"font-weight: 400;\">. It does not include health insurance or any other form of non-monetary fringe benefit.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Although federal law requires you to pay overtime to all non-exempt employees who work over their contracted hours, <\/span><b>all other forms of supplemental pay are optional<\/b><span style=\"font-weight: 400;\">. It is up to your business whether you offer any or all of these benefits. Nonetheless, offering some form of supplemental pay is <\/span><b>common practice in most businesses<\/b><span style=\"font-weight: 400;\">. This is because it can be a great way to <\/span><b>reward and incentivize employees and attract and retain top talent<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<h2><b>What qualifies as supplemental pay?<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">According to the <\/span><a href=\"https:\/\/www.irs.gov\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">IRS<\/span><\/a><span style=\"font-weight: 400;\">, <\/span><b>supplemental pay includes<\/b><span style=\"font-weight: 400;\">:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><b>Overtime pay<\/b><span style=\"font-weight: 400;\">. Supplementary wages earned by a non-exempt employee who works any hours over their 40-hour workweek. According to the <\/span><a href=\"https:\/\/www.dol.gov\/agencies\/whd\/flsa\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">FLSA<\/span><\/a><span style=\"font-weight: 400;\"> (Fair Labor Standards Act), you must pay employees 1.5 times their regular rate of pay for every additional hour worked.<\/span><span style=\"font-weight: 400;\">\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Accumulated sick leave<\/b><span style=\"font-weight: 400;\">. The FMLA doesn\u2019t obligate employers to offer paid sick leave (although certain states do enforce it). If you do offer it, employees can choose to receive a payout for any unused sick leave in the form of supplemental wages.<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Severance pay<\/b><span style=\"font-weight: 400;\">. If you include a severance pay clause in an employee\u2019s contract, then you must pay them severance pay when they leave the company. You can do this as a single payment or through multiple checks over a period of time.<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Retroactive pay increases<\/b><span style=\"font-weight: 400;\">. This can apply if an employee receives a raise at the end of a pay period that isn\u2019t reflected in their paycheck until the next pay period. The payment makes up the difference between the amount they received in the last pay period and how much they were owed.<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Bonuses<\/b><span style=\"font-weight: 400;\">. Monetary amounts offered to employees as an incentive or a reward for high performance. Can include signing, referral, and retention bonuses in the form of cash or stock options.<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Equity pay<\/b><span style=\"font-weight: 400;\">. Compensation in the form of company stock options. Often used by new and growing companies that can\u2019t be as competitive with their base pay or other taxable fringe benefits.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">You can, of course, include additional types of supplemental wages in your compensation scheme. However, <\/span><b>it\u2019s important to understand what\u2019s accepted as supplemental pay by the IRS, as this will impact how much tax you need to withhold<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p>For an overview of pay for performance models, check out our video on the subject:<\/p>\n<p><iframe title=\"What is Pay for Performance EXPLAINED\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/Zhhkrve3cmo?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<h2><b>Who should report supplemental wages?<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">As an employer, <\/span><b>you are responsible for tracking and reporting supplemental pay<\/b><span style=\"font-weight: 400;\">. It\u2019s therefore important that you <\/span><b>maintain a record <\/b><span style=\"font-weight: 400;\">of how much supplemental pay you offer each employee.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This includes keeping a record of:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The amount of supplemental wages an employee receives within the tax year.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Whether you combine an employee\u2019s supplemental wages with their regular wages or process them separately.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Although supplemental pay only forms a small part of an employee\u2019s paycheck, it\u2019s important to <\/span><b>include processes in your payroll system to manage them effectively<\/b><span style=\"font-weight: 400;\">. That way, you will pay each employee the correct amount at the end of each pay period. This is fundamental for building an <\/span><b>engaged and loyal workforce<\/b><span style=\"font-weight: 400;\">. An effective supplemental pay process also helps you comply with federal and state <\/span><b>tax obligations<\/b><span style=\"font-weight: 400;\">, as we will see in more detail below.<\/span><\/p>\n<h2><b>How are supplemental wages taxed?<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Supplemental pay is <\/span><b>classed as taxable income<\/b><span style=\"font-weight: 400;\">. As a result, you are responsible for <\/span><b>tracking and accurately reporting supplemental pay<\/b><span style=\"font-weight: 400;\">, as well as withholding the right amount of <\/span><b>federal income tax<\/b><span style=\"font-weight: 400;\"> from an employee\u2019s supplemental wages. Moreover, supplemental pay is subject to <\/span><a href=\"https:\/\/www.ssa.gov\/people\/materials\/pdfs\/EN-05-10297.pdf\"><span style=\"font-weight: 400;\">FICA<\/span><\/a><span style=\"font-weight: 400;\"> (Federal Insurance Contributions Act) payroll taxes so you are also responsible for withholding <\/span><b>Social Security and Medicare contributions<\/b><span style=\"font-weight: 400;\">, as well as <\/span><b>federal unemployment tax<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Because this form of compensation is not classed as an employee\u2019s regular wage, <\/span><b>the way you calculate federal income tax can be different<\/b><span style=\"font-weight: 400;\">. Withholding rules depend on <\/span><b>how much money an employee receives in supplemental wages in a year, and how you process payments<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Essentially, in terms of federal income tax, you can <\/span><b>process supplemental pay in one of two ways<\/b><span style=\"font-weight: 400;\">:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Withhold a flat percentage on supplemental wages (<\/span><b>percentage method<\/b><span style=\"font-weight: 400;\">)<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Combine supplemental and regular wages (<\/span><b>aggregate method<\/b><span style=\"font-weight: 400;\">)<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">For example, if you pay a bonus to an employee in a separate bonus check, you must withhold federal income tax at a flat rate of <\/span><b>22%<\/b><span style=\"font-weight: 400;\">. However, if you include the same bonus in an employee\u2019s regular paycheck and don\u2019t specify that it is bonus pay, then you must calculate tax withholding <\/span><b>based on the allowance marked by each employee on their W-4 form<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you pay an employee more than <\/span><b>$1 million in supplemental income in a year<\/b><span style=\"font-weight: 400;\">, then a different rate applies. In this case, all supplemental wages must be taxed at <\/span><b>37%<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Benefits like <\/span><b>vacation pay and paid time off<\/b><span style=\"font-weight: 400;\"> don\u2019t qualify as supplemental income. These benefits are subject to the <\/span><b>same withheld income tax as regular pay<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><a href=\"https:\/\/factorialhr.com\/templates\/download-free-payslip\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" class=\"aligncenter wp-image-77147 \" src=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2022\/06\/23182506\/Payslip-template-1-300x103.jpg\" alt=\"compensation-strategy-template\" width=\"783\" height=\"269\" srcset=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2022\/06\/23182506\/Payslip-template-1-300x103.jpg 300w, https:\/\/factorialhr.com\/wp-content\/uploads\/2022\/06\/23182506\/Payslip-template-1-768x263.jpg 768w, https:\/\/factorialhr.com\/wp-content\/uploads\/2022\/06\/23182506\/Payslip-template-1.jpg 900w\" sizes=\"(max-width: 783px) 100vw, 783px\" \/><\/a><\/p>\n<h2><b>How to effectively manage supplemental pay<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Supplemental wages can be difficult to understand, especially from a tax perspective. To help you out, we are going to finish today\u2019s post by sharing a few <\/span><b>tips and best practices<\/b><span style=\"font-weight: 400;\"> to help you<\/span><b> effectively manage supplemental pay<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h3><b>Create a clear and transparent compensation policy<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The best way to establish clear guidelines and procedures for managing supplemental pay is to create a <\/span><b>clear and transparent compensation policy<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Your policy should include clear guidelines for salaries, and a <\/span><b>detailed breakdown of each supplemental benefit<\/b><span style=\"font-weight: 400;\"> that you offer. Make sure you explain <\/span><b>how supplemental benefits are paid, how taxes are withheld, and whether these benefits are included in regular paychecks or paid separately<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Once you&#8217;ve created your compensation policy, make sure you <\/span><b>share it with your entire workforce<\/b><span style=\"font-weight: 400;\">. This includes existing employees and new recruits. That way, your employees will <\/span><b>understand exactly how your compensation scheme works<\/b><span style=\"font-weight: 400;\"> and there will be no surprises or misunderstandings. Plus, being <\/span><b>transparent <\/b><span style=\"font-weight: 400;\">in this way helps to <\/span><b>build employee trust<\/b><span style=\"font-weight: 400;\">, vital for building a <\/span><b>healthy and productive company culture<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h3><b>Make sure you understand your tax obligations<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">It\u2019s also vital that you understand all your <\/span><b>supplemental pay tax and reporting obligations<\/b><span style=\"font-weight: 400;\">. The <\/span><a href=\"https:\/\/www.irs.gov\/publications\/p15#en_US_2023_publink1000202352\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">IRS website<\/span><\/a><span style=\"font-weight: 400;\"> includes detailed guidelines for supplemental wages. This includes information on <\/span><b>taxable benefits, tax rates, taxable thresholds, and tax report submission requirements<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you\u2019re still not clear on your tax obligations, then it\u2019s a good idea to <\/span><b>speak to a tax professional<\/b><span style=\"font-weight: 400;\">. They can help you understand all <\/span><b>tax-reporting and submission obligations<\/b><span style=\"font-weight: 400;\"> established by federal and state governments. That way, you can ensure compliance and avoid potential <\/span><b>fines and penalties for late or inaccurate tax liabilities<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h3><b>Use payroll software<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Finally, make sure you have a <\/span><b>comprehensive system in place for managing <\/b><a href=\"https:\/\/factorialhr.com\/blog\/payroll\/\" target=\"_blank\" rel=\"noopener\"><b>payroll<\/b><\/a><span style=\"font-weight: 400;\">. This will ensure that you calculate the right salaries and withhold the correct amounts for supplemental pay and all other <\/span><a href=\"https:\/\/factorialhr.com\/blog\/employers-guide-to-payroll-tax\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">payroll taxes<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The best way to manage all this is by using <\/span><b>payroll software<\/b><span style=\"font-weight: 400;\">. With the right solution, you can <\/span><b>automate all payroll calculations and deductions<\/b><span style=\"font-weight: 400;\">. You can also easily incorporate additional payroll systems such as <\/span><a href=\"https:\/\/factorialhr.com\/blog\/on-demand-pay\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">on-demand pay<\/span><\/a><span style=\"font-weight: 400;\"> with many solutions. Plus, a good system will provide you with <\/span><b>detailed reports that you can submit to the IRS as and when required<\/b><span style=\"font-weight: 400;\">. You can also use these reports to access detailed insights about your company\u2019s payroll and spending.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, at <\/span><b>Factorial<\/b><span style=\"font-weight: 400;\">, we understand that <\/span><a href=\"https:\/\/factorialhr.com\/blog\/setting-up-payroll-for-small-business\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">payroll can be difficult to set up<\/span><\/a><span style=\"font-weight: 400;\">. Even more so if you offer supplemental pay. That\u2019s why we want to provide you with a solution that <\/span><b>centralizes all of your tasks on one, simple platform<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Features of <\/span><b>Factorial\u2019s payroll software<\/b><span style=\"font-weight: 400;\"> include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Simplified benefits administration tools<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Customized payroll reports<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Easy integration with employee time-tracking data<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Automated tools for calculating payroll taxes, PTO, and sick days<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Variables and supplements<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Employee and supplement observations<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">New hires and termination notifications<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Contract update notifications<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Payroll folders<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Custom notifications and automation features<\/span><\/li>\n<li style=\"font-weight: 400;\"><a href=\"https:\/\/factorialhr.com\/blog\/payslip-template-excel\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Payslip templates<\/span><\/a><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">What\u2019s more, Factorial\u2019s payroll software is a <\/span><b>solid SaaS solution with a strong emphasis on <\/b><a href=\"https:\/\/factorialhr.com\/blog\/payroll-security\/\" target=\"_blank\" rel=\"noopener\"><b>payroll security<\/b><\/a><span style=\"font-weight: 400;\">. With Factorial, all database information is encrypted, helping you keep your sensitive data secure. The application uses a Single Sign-On system and vulnerability diagnostics are performed regularly.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">All these features will help your supplemental pay systems run smoothly and securely so that you can <\/span><b>stay compliant and build a happy and productive workforce<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><a href=\"https:\/\/factorialhr.com\/request-demo\"><img decoding=\"async\" class=\"alignnone wp-image-112901\" src=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2020\/03\/27125218\/ENG_Blog_banner_900x308_J_v1.0-2-300x103.png\" alt=\"banner-demo-performance\" width=\"548\" height=\"188\" srcset=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2020\/03\/27125218\/ENG_Blog_banner_900x308_J_v1.0-2-300x103.png 300w, https:\/\/factorialhr.com\/wp-content\/uploads\/2020\/03\/27125218\/ENG_Blog_banner_900x308_J_v1.0-2-768x263.png 768w, https:\/\/factorialhr.com\/wp-content\/uploads\/2020\/03\/27125218\/ENG_Blog_banner_900x308_J_v1.0-2.png 900w\" sizes=\"(max-width: 548px) 100vw, 548px\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>All employers have a duty to pay regular wages to their employees for their time. However, many also choose to offer supplemental pay. Offering a benefits package that includes supplementary forms of compensation can help you boost your employer brand so that you can attract and retain talent. In fact, many Americans claim that additional<a href=\"https:\/\/factorialhr.com\/blog\/supplemental-pay\/\" class=\"read-more\"> [&#8230;]<\/a><\/p>\n","protected":false},"author":80,"featured_media":97050,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[146],"tags":[],"class_list":["post-97049","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legal-hr"],"acf":{"topics":"payroll"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.5 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Supplemental pay: Meaning and management tips | Factorial<\/title>\n<meta name=\"description\" content=\"Offering supplemental pay can help you attract and retain talent. 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