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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