- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Social Security & Medicare Withholding for a "Special Payment" (i.e., not regular wages)
Employees of a company work under a collective bargaining agreement. Part of the agreement states that if the cost of providing health insurance for the employees achieves a net savings for the company of a at least a certain amount over the previous year's cost (because of plan design changes, etc.), then that savings will be distributed by the employer to the employees in a special, one-time payment.
Is a payment of that nature subject to Social Security and Medicare tax?
Topics:
‎June 10, 2024
2:51 PM