Determine the Taxability of Specific Payroll Features.
If you are not sure of the taxability of a specific feature, you're in the right place!
DEFERRED COMPENSATION |
Employee Taxable |
Employer Taxable |
---|---|---|
Federal Taxable |
No* |
Not Applicable |
Social Security/Medicare Taxable |
Yes |
Yes |
State Taxable |
Varies |
Not Applicable |
SUI/SDI Taxable |
Varies |
Varies |
Local Taxable |
Varies |
Not Applicable |
FUTA |
Not Applicable |
Yes |
*501 (c), which is non-taxable, is included in Box 1 of the W-2. The employee must deduct the amount when filing Form 1040. |
GROUP TERM LIFE INSURANCE |
Employee Taxable |
Employer Taxable |
---|---|---|
Federal Taxable |
Yes |
Not Applicable |
Social Security/Medicare Taxable |
Yes |
Yes |
State Taxable |
Varies |
Not Applicable |
SUI/SDI Taxable |
Varies |
Varies |
Local Taxable |
Varies |
Not Applicable |
FUTA |
Not Applicable |
No |
TAXABLE FRINGE BENEFITS |
Employee Taxable |
Employer Taxable |
---|---|---|
Federal Taxable |
Yes |
Not Applicable |
Social Security/Medicare Taxable |
Yes |
Yes |
State Taxable |
Yes |
Not Applicable |
SUI/SDI Taxable |
Yes |
Yes |
Local Taxable |
Varies |
Not Applicable |
FUTA |
Not Applicable |
Yes |
1099 OTHER COMPENSATION |
Employee Taxable |
Employer Taxable |
---|---|---|
Federal Taxable |
Yes |
Not Applicable |
Social Security/Medicare Taxable |
No |
No |
State Taxable |
Varies |
Not Applicable |
SUI/SDI Taxable |
No |
No |
Local Taxable |
Varies |
Not Applicable |
FUTA |
Not Applicable |
No |
3RD PARTY SICK PAY (UNDER 6 MONTH) |
Employee Taxable |
Employer Taxable |
---|---|---|
Federal Taxable |
Yes |
Not Applicable |
Social Security/Medicare Taxable |
Yes |
Yes |
State Taxable |
Varies |
Not Applicable |
SUI/SDI Taxable |
Varies |
Varies |
Local Taxable |
Varies |
Not Applicable |
FUTA |
Not Applicable |
Yes |
LONG TERM DISABILITY |
Employee Taxable |
Employer Taxable |
---|---|---|
Federal Taxable |
Yes |
Not Applicable |
Social Security/Medicare Taxable |
No |
No |
State Taxable |
Varies |
Not Applicable |
SUI/SDI Taxable |
Varies |
Varies |
Local Taxable |
Varies |
Not Applicable |
FUTA |
Not Applicable |
No |