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Taxation of Employee Benefits: Tennessee

Taxation of Employee Benefits requirements for other states

Federal law and guidance on this subject should be reviewed together with this section.

Author: Vicki M. Lambert, The Payroll Advisor


  • Employee contributions to cafeteria plans under Internal Revenue Code (IRC) § 125 are taxed differently in Tennessee than under federal law for unemployment insurance purposes. See Salary Deferrals to IRC § 125 Cafeteria Plans.