Financial Services Resource Center for HR: Payroll

This item is part of Financial Services Resource Center for HR

Financial services employers often provide their employees with many types of special payments and fringe benefits in addition to their regular pay. These typically include commissions, bonuses, awards, stocks options, directors' fees, golden parachute payments, use of company cars and aircraft, personal security services and club memberships among many others. Wages subject to payroll taxes (i.e., federal income tax (FIT), Social Security and Medicare (FICA) and federal unemployment insurance (FUTA) taxes) generally include all payments to employees for their services and certain fringe benefits. The value of fringe benefits is subject to FIT and FICA withholding and FUTA tax, unless a specific provision of the Internal Revenue Code completely excludes them from taxation (e.g., health benefits). Special valuation rules must be complied with to prevent an otherwise tax free fringe benefit from becoming fully taxable.

XpertHR has a great number of documents to help employers handle all their payroll issues: