As a general rule, taxable wages include all payment for services performed by an employee for an employer, including the cash value of all remuneration (including benefits) paid in any way other than cash. All wages are subject to employment taxes unless the payments are specifically excluded from income by the federal tax code. Wages include payments made by cash or check.
The label given to a payment is unimportant in determining whether it constitutes wages. Thus, salaries, fees, commissions, bonuses, pensions, and retirement pay are considered wages if paid as compensation for services performed by an employee for an employer.
The definition of "wages" is generally the same for income tax, social security and unemployment insurance purposes.
The medium used for payment is generally not controlling. Payment may be in-kind in the form of noncash property, such as stocks, bonds (including U.S. Savings Bonds), board, rent or housing. However, if payment is made in a medium other than cash, the amount constituting wages is the fair market value of the property at the time of payment. In determining fair market value of noncash payment, you would determine the cost that an employee would pay on the open market for the property and not what the cost was to the employer.
<p> 36,310, What are "wages?" As a general rule, taxable wages include all payment for services performed by an employee for an employer, including the cash value of all remuneration (including benefits) paid in any way other than cash. All wages are subject to employment taxes unless the payments are specifi</p>