Expense Reimbursements: Don’t Get Tripped Up by the Taxes
Yesterday’s Advisor presented basics of expense reimbursement (courtesy of Compensation.BLR.com); today, details of processing and taxation.
Tag: FUTA
Bonuses and Gift Cards—Probably Taxable
Tax Consequences of Bonuses Bonuses paid in consideration for services rendered are almost always taxable wages subject to income tax withholding, FICA, and FUTA. These include production, incentive, and nondeferred profit sharing bonuses. The Internal Revenue Service has also ruled that bonuses paid to employees for signing or ratifying an employment contract are considered wages […]
Stay One Step Ahead of the Misclassification Police
What do short stories by O. Henry and independent contractor analysis have in common? You’re left guessing the outcome until the very end, says attorney Deanna Brinkerhoff. The federal Department of Labor (DOL) is cracking down on classification, and that makes now an excellent time to evaluate your organization’s classification decisions.
Tax Treatment Of Donated Leave
Leave: IRS Issues Guidance on Tax Treatment of Donated Leave
According to a new IRS notice, leave donated by an employee to a qualified employer-sponsored leave bank following a major disaster is not considered income to the donating employee, as long as the leave received by an affected employee is treated as wages for purposes of FICA, FUTA, and income tax withholding. Our HR Management […]
News Notes: Back Wages Are Taxable In The Year Paid
In an appeal by the Cleveland Indians baseball team, the U.S. Supreme Court has ruled that back wages are subject to federal Social Security and unemployment taxes in the year they are paid, rather than in the year they were earned. The dispute arose out of a settlement of grievances asserted by major league baseball […]