Are Cafeteria and 401k plans reportable wages?
Yes. Amounts deducted from employees’ gross salaries to pay for these items are wages. If, however, the employer makes a matching contributions to an employee’s 401k plan, the amount contributed by the employer is not wages. Q: I’m an officer and sole shareholder of a subchapter S corporation. Why should I have to pay taxes on myself? I’ll never be able to draw benefits. A: A corporation is a separate legal entity and thus a separate employing unit under Nevada Unemployment Compensation Law. Therefore, any individual performing services for wages is an employee of the corporation. Subchapter S status pertains to federal income tax laws and has no bearing on state law. Unemployment compensation is an insurance program; and while the likelihood of drawing benefits may be less than in other situations, it is still possible, if all other requirements are met.
