Asked by Jeremiah Miller on Jun 27, 2024
Verified
Supplemental wage payments include all the following except:
A) Commissions.
B) Expenses paid under an accountable plan.
C) Taxable fringe benefits.
D) Bonuses.
Supplemental Wage Payments
Additional wages paid to an employee, varying from regular salary, such as bonuses, commission, overtime pay, and severance pay, which may be taxed differently.
Accountable Plan
This is an IRS-recognized plan that allows businesses to reimburse employees for work-related expenses tax-free, provided certain conditions are met, such as business connection and adequate accounting.
Taxable Fringe Benefits
Benefits provided by an employer to an employee, which are considered taxable income for the employee, such as personal use of a company car.
- Identify components and exceptions of supplemental wage payments.
Verified Answer
ZK
Zybrea KnightJul 04, 2024
Final Answer :
B
Explanation :
Supplemental wage payments include commissions, bonuses, and taxable fringe benefits, but expenses paid under an accountable plan are not considered supplemental wages. An accountable plan is a system for reimbursing employees for job-related expenses that requires employees to substantiate their expenses and return any excess payments. These payments are not included in an employee's wage base and are not subject to withholding taxes. Therefore, choice B is the correct answer as it is not a type of supplemental wage payment.
Learning Objectives
- Identify components and exceptions of supplemental wage payments.