Have a tax question? Ask a tax Expert
Hello, I'm Robin. Welcome to JustAnswer. I'm reviewing your question now and typing up my reply. I'll post that in just a few moments.
Commissions are considered Supplemental wages and the IRS decides the rate. Why the large company has not been following the rule is not known but if the supplemental wages do not exceed one million dollars, employers can choose to combine and tax all the wages or they can use the flat 25% rate. But if the supplemental wages do exceed one million dollars, the employer must withhold a 35% tax on the excess amount after one million dollars.
Some states though require the wages and supplements be split out. This gives the employer no choice except to tax at 25%.
Please let me know if you need more information.If not then scroll up to see the STARS to rate so I am credited.