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Product ID: 408398EAU
 
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When Wages Are Not FICA Wages

OnDemand Webinar (88 minutes)

Learn what is not considered wages by the IRS, thereby exempting those monies from FICA tax.This information will be beneficial to you in helping reduce employer liability for FICA taxes on money that is not wages. You already know that any cash or noncash remuneration received for employment, unless specifically exempt, is considered wages subject to the FICA tax. This material will examine the importance of determining whether wages are not FICA wages. Learn about the various wages that are not considered FICA wages, and how to classify those non-FICA wages and their effects on retirement benefits. Recent litigation issues will also be discussed to help you determine what should be considered non-FICA wages.

Authors

Jackie A. Sexson

Agenda

Definitions

• FICA Wages

• Non-FICA Wages

Importance of Determining Non-FICA Wages

• Reduce Employer Liability

• Avoid Monetary Penalties for Misclassifications

Examples of Non-FICA Wages

• Severance Pay to Tenured Teachers

- What Does Case Law Say?

• Employee Termination Payments

- Four Types of Termination Payments

- Which Types Are Not Considered Wages?

• Settlement Damages Paid to Employees

- What Types of Claims Are Not Considered Wages?

- What About Awarded Attorney's Fees?

- What Are Back Pay and Future Pay Damage Awards?

• Reimbursement of Employee Business Expenses

- Wages or Not?

- What Does Reasonable Expectation Mean?

- What About Hourly per Diem Rates?

Classification of Non-FICA Wages Effect on Retirement Benefits

• Importance of Plan Definitions

• Elective Deferrals

• Payment of Benefits to Spouses Arising out of Divorce Proceedings

Recent Cases