You must include the payment from your employee when you are sick or injured.
Where do you get the payment?
1. if you get payment from a 3rd party who is not your employer, you may choose to withhold your tax or not. Then you must fill out Form W-4S.
2. if you receive the payment under a collective bargaining agreement between your union and your employer, the withholding part depends on the provisions in the agreement.
The sources of sick pay benefits:
- A welfare fund
- A state sickness or disability fund
- An association of employers or employees.
- An insurance plan via accident or health plan
| Employer pay the premium | Employee pay the premium | Both pay the premium |
| The benefits are taxable | The benefits are nontaxable | The benefits are taxable only the amount due to employer's payments |
If the accident or health insurance plan is under cafeteria plan
| If you include the premiums as you income | If you don't include the premiums as your income |
| The benefits are nontaxable | The benefits are taxable |
PSQ
Source: http://www.irs.gov
No comments:
Post a Comment