Thank you. This confirms what I am finding as well. When I reached out to San Francisco, they referred me back to the state of California to find out the taxation and reporting requirements for the supplemental wages. I hope that San Francisco releases some additional guidance and rules soon since more employers are going to be responsible for these payments starting January 1, 2018. Otherwise, there is going to be an inconsistency on how the wages are treated. There should be some type of concrete ruling to say if these wages should be reported on quarterly reports and w-2s.
