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