Types of Payments that are Considered Wages

WAGES (subject to UI Premiums)

NOT WAGES (exempt from UI Premiums)

Payments defined as wages under the Federal Unemployment Tax Act (FUTA)

Payments for moving expenses if deduction is allowed in the federal Internal Revenue Code (IRC); IRC 127

Tips

Group Term Life Insurance

Employee contribution to 401(k) or IRC 408 simplified Retirement Plans

Employer contribution to 401(k) or IRC 408 simplified Retirement Plans; all PERA contributions

Disability payments paid in first 6 months after an employee worked for you

Amounts paid or incurred for a dependent care plan (IRC 129) or a educational assistance program (IRC 127)

Employer contributions to a Medical Savings Account

Employee Contributions to a Medical Savings Account

Employee-matching contributions into IRC 219 simplified employee pension plan

Employer contributions into IRC 219 simplified employee pension plan

Payments made by public school or 501(c)(3) into annuity contract or by governmental entity into deferred compensation plan because of a salary-reduction agreement

Payments into a deferred compensation plan if you are a government entity

Payments for personal services, including anything other than cash that has cash value (except payments to agricultural or domestic workers, which must be cash to be wages)

Value of meals or lodging furnished by employer if such items are excluded from income as described in IRC 119

Employee contributions to a Salary Reduction Simplified Employee Pension Plan (SARSEP)

Employer contributions to a Salary Reduction Simplified Employee Pension Plan(SARSEP)

125 Cafeteria Plan if cash is chosen

125 Cafeteria Plan if qualified benefit chosen