Supplemental Unemployment Benefits

Supplemental Unemployment Benefits

The Supplemental Unemployment Benefits are.

payments received by terminated employees from an employer-financed fund; these payments are not unemployment compensation. Supplemental unemployment benefits taxed as wages are benefits received from a company-financed fund to which the employees did not contribute. Such benefits are not treated as unemployment compensation; they are taxable as wages and are subject to withholding for income tax, but may not be subject to social security and Medicare tax. These supplemental unemployment benefits are usually paid under guaranteed annual wage plans and must be reported as income. Supplemental unemployment benefits are taxable as wages and are subject to income tax withholding but not to Social Security, Medicare, or federal unemployment taxes.

State Income Tax


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