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Type of Payment: |
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Treatment under UI Law: |
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Advances – Payments for future work. |
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Taxable |
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Airline Travel – non-business – employer provided – IRS Code Sections 61, 132, 162, 274 |
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Taxable |
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Alien – nonresident – student, trainee, or teacher covered by Section 101(a)(15)(F)(J)(M) or (Q) of the Immigration and Nationality Act. |
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Exempt Wages, if less than 22 years of age and service is approved "on-the-job" training program. |
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Automobile – provided by employer – personal use – IRS Code Section 61, 132, 274(d), 280(f) |
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Taxable |
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Back Pay (paid under a court order, administrative decision, or settlement agreement) |
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Taxable |
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Bonuses |
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Taxable |
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Cafeteria Plan – employer contributions – IRS Code Section 125 |
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Exempt |
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Cash or deferred arrangements (401(K)) by employee |
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Taxable |
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Casual Labor – not in the course of business |
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Exempt |
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Commissions – other than real estate and insurance agents paid solely by way of commission |
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Taxable |
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Commissions – only of real estate and insurance agents paid solely by way of commission |
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Exempt |
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Corporate Officers |
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Taxable |
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Death benefits – Gifts to Family – IRS Code Section 101(b) |
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Exempt |
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Deceased employee’s wages – IRS Code Section 101(b) |
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Taxable |
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Dismissal or Severance Pay – IRS Code Section 61(a) |
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Taxable |
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Disability insurance –employer payment |
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Exempt |
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Disability – long term (over 6 months) – IRS Code Section 105 |
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Exempt |
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Draws or advances against future earnings |
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Taxable |
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Employment agency fees – employer paid to agency |
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Exempt |
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Entertainment – employer provided (theater tickets, athletic facilities) |
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Taxable |
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Employment Contract cancellation – lump-sum settlement |
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Taxable |
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Equipment, Tool, Uniform allowances |
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Exempt |
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Gifts – cash or merchandise |
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Taxable |
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Golden parachute payments – Excessive Termination Payments – IRS Code Sections 280(g), 49999 |
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Taxable |
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Idle Time (standby) pay – pay for time not worked |
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Taxable |
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Individual Retirement Account – IRA – qualified plan – employer contribution |
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Exempt |
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Individual Retirement Account – IRA – employee contribution – IRS Code Section 408(k) |
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Taxable |
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Jury duty supplemental pay – difference between regular wages and amount received for jury duty. |
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Taxable |
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Life Insurance premiums – employer paid – not under a qualified plan |
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Taxable |
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Life Insurance premiums – employer paid under a qualified plan – IRS Code Section 79 |
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Exempt |
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Life Insurance premiums – employee paid through payroll deduction (not cafeteria plan) |
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Taxable |
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Life insurance proceeds – from policies purchased by employer for employee |
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Exempt |
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Meals and Lodging |
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Taxable |
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Medical and dental care insurance premiums – employer payment under qualified plan. |
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Exempt |
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Medical and dental care insurance premiums – employee salary deduction – not cafeteria plan |
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Taxable |
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On-Call pay – payment to employee for time available to work if called |
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Taxable |
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Per Diem Allowances |
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Exempt |
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Severance or dismissal pay |
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Taxable |
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Sick or disability pay – bona fide – IRS Code Section 162; 3306(b)(4) |
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Exempt |
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Sick Pay – regular – 3306(b)(4) |
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Taxable (six month limitation) |
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Sick Pay – Third Party – IRS Code Section 6051 |
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Exempt |
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Step-children, foster children of sole proprietor |
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Exempt (under the age of 18) |
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Step-parent, foster parent of sole proprietor |
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Exempt |
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Tips - IRS Code Sections 3402, 6041, 6053 |
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Taxable |
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Uniform allowance or reimbursements |
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Exempt |
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Vacation Pay |
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Taxable |
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Workers’ compensation supplemental pay – employer payment – IRS Code Sections 104(a), 105(a), 105(c) |
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Exempt |
