---
title: "Payroll Taxability | ADP"
description: "Determine the Taxability of Specific Payroll Features."
---

# 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

 |

  

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