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Global Work Glossary

Lost in a maze of global employment jargon? Find your way out with our handy collection of work and HR terminology

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Supplemental pay

What refers to supplemental pay?

Supplemental pay is additional money that’s provided to employees outside of their regular wages or salary. This most often comes in the form of bonuses, sales commissions, overtime pay, accumulated sick leave, severance pay, vacation pay, back pay, tips, and retroactive pay increases.

It’s important to note that some types of supplemental pay are mandatory in certain countries. For example, companies in some states in the US have to pay accrued vacation pay to employees who leave. Using an HR platform such as Multiplier allows you to stay on top of making the right payments at the right times with automated notifications and calculations.

A centralized system can also allow you to ensure accuracy where supplemental pay can make things complicated. For example, unlike a regular salary, supplemental pay can be paid out at any time of the month. This means you have to consider the tax implications and employee withholdings every time you pay someone a bonus or commission.

As well as tracking all payment details, Multiplier ensures that you pay the right tax and helps you manage all benefits correctly. This means increased ease and efficiency in the payroll process.

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