What payments are considered wages under the federal Internal Revenue Code (IRC)?

Author: Alice Gilman

Gross income and wages are defined very broadly. Under § 61 of the IRC, gross income is all income that an individual receives, including compensation for services, such as fees, commissions, fringe benefits and similar items. Likewise, wages include all payments to an employee for his or her services and fringe benefits. Wages may be paid in cash or in property. However, the IRC does exclude certain payments from the definition of wages and tax.