Print this Page

Payroll Taxability

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

Contact Us:

Try our new Payroll Price Quote Tool

Call 1.800.CALL.ADP,
ext. 411

Find the ADP products and
services that best fit your
company's needs.

# of Employees:

ZIP Code: