What are wage inclusions and exclusions?
The following are wages: 1. Meal and lodging provided by an employer to an employee, unless the meals and lodging are provided on the employers premises for the employer’s convenience. 2. Tips which are reported pursuant to Section 6053 of the Internal Revenue Code. 3. Payments to workers for: (a) dismissal; (b) vacations; (c) sick leave; and (d) Bonuses. 4. The employees contribution to a qualified retirement, sickness or accident insurance or medical plan. Notation: The Federal Unemployment Taxable (FUTA) wage base remains unchanged. The following payments are not wages: 1. Employer payments for Retirement, Sickness or Accident disability insurance or medical insurance. 2. Payment by the employer, without deduction, of the employee’s Social Security Taxes. 3. Vacation pay paid incident to or during a period of unemployment. 4. Attendance bonus paid during or incident to any period of unemployment. 5. Wages of a sole proprietor, his/her spouse, children or the sole proprietor under 18
