Hiring Employees
Wages for Employees
Wages subject to Federal employment taxes include all pay
you give an employee for services performed. The pay may be in
cash or in other forms. It includes salaries, vacation allowances,
bonuses, commissions, and fringe benefits. It does not matter
how you measure or make the payments. Also, compensation paid
to a former employee for services performed while still employed
are wages subject to employment taxes. Pub.
15-A, Employer's Supplemental Tax Guide, provides additional
information on wages and other compensation.
Important References
Publication
15
Circular E, Employer's Tax Guide
Publication
15-A Employer's
Supplemental Tax Guide