Most states follow the federal rules for reporting distributions from deferred compensation plans, please consult local regulations. INCOME TAX WITHHOLDING Distributions from nonqualiï¬ ed deferred compensation plans are normally considered to be âsupplemental wagesâ for income tax withholding purposes.Federal tax withholding rules require that taxes on supplemental wages are withheld at a ï¬ at rate of 25 percent.If the participantâs total supplemental wages from all sources exceeds $1 million, federal tax must be withheld at the ï¬ at rate of 35 percent.State rules vary, please consult local regulations.ost states follow the federal rules for reporting distributions from deferred compensation plans, please consult local regulations. INCOME TAX WITHHOLDING Distributions from nonqualiï¬ ed deferred compensation plans are normally considered to be âsupplemental wagesâ for income tax withholding purposes.
But finding the main idea of a paragraph or longer passage of text, along with making an inference, finding the author's purpose, or understanding vocabulary words in context, is one of the reading skills important to master.
Reading questions on the ACT aren't arranged in order of difficulty, so the main idea questions on a passage might be the first questions on the page. But you're allowed to answer in any order you want, so just circle them, move on to the detail questions, and then come back to the main ideas later.