Tax Reporting King Of Prussia PA

Whenever you transfer something of value to an employee as compensation for the employee's services, you've potentially made a taxable wage payment. However, the laws do provide for a number of exceptions. There are some types of compensation and fringe benefits that are not always considered taxable wages, for some or all payroll tax purposes.

Pamela Anne Croke
(610) 265-5980
Pa Land Title Institute, 1005 W 9th Avenue
King of Prussia, PA
State Licensing
Pennsylvania

Katherine Deperi Gibson
(610) 230-2832
Nationwide Funds Group, 1000 Continental Dr Ste 400
King of Prussia, PA
State Licensing
Pennsylvania

William John Corrigan
(800) 486-7015
First American Title Ins Co, 620 Freedom Bus Ctr Dr 4th Fl
King of Prussia, PA
State Licensing
Pennsylvania

Sylvia M. Bruni-Carroll
(484) 744-6779
633 Crestwyck Drive
King of Prussia, PA
State Licensing
Pennsylvania

Daryl Endy Klein
(610) 491-9910
Bleczinski Kleiman Et Al, 700 American Ave Ste 200-A
King of Prussia, PA
State Licensing
Pennsylvania

Joan R. Kirby
(484) 688-2010
Maximus Inc, 1040 First Avenue Ste 400
King of Prussia, PA
State Licensing
Pennsylvania

Edward J. Mcginn Jr.
(610) 354-8251
Marshall Dennehey Et Al, 620 Freedom Ctr Ste 300
King of Prussia, PA
State Licensing
Pennsylvania

John P. Rutkowski
(610) 297-4246
630 Freedom Bus Center Dr Fl 3
King of Prussia, PA
State Licensing
Pennsylvania

Michael J. Fromhold
(610) 265-8440
First American Title Ins Co, 620 Freedom Bus Ctr Dr 4th Fl
King of Prussia, PA
State Licensing
Pennsylvania

Cheri D. Andrews
(610) 783-4650
Trend, 660 American Ave Ste 203
King of Prussia, PA
State Licensing
Pennsylvania

Tax Reporting

What Compensation is Taxable?

Once you've identified the workers for whom you have payroll tax obligations, the next step is to determine what portion of the compensation you pay those workers is actually taxable.

"Wages" defined. The federal and state payroll tax laws generally identify taxable compensation as being an employee's wages. Furthermore, they broadly define "wages" to encompass almost every payment you make to an employee for services. The label you give a payment (salary, fee, commission, etc.) is unimportant in determining whether it constitutes wages. Nor does it matter that a payment is designed to supplement an employee's basic salary or that it is not made in cash . Also immaterial is the basis on which the payment is made (hours worked, percentage of profits, etc.). Rather, whenever you transfer something of value to an employee as compensation for the employee's services, you've potentially made a taxable wage payment.

However, the laws do provide for a number of exceptions. There are some types of compensation and fringe benefits that are not always considered taxable wages, for some or all payroll tax purposes:

  • advances and loans
  • gifts, awards, and prizes
  • business expense reimbursements
  • employee benefits
  • tips
  • vacation and other time-off pay
  • non-cash payments
  • casual labor

Wage caps. The definition of taxable wages is basically the same for each of the different payroll taxes. In other words, a specific type of compensation or benefit ...

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