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RS 01402: Wage Exclusions

Effective Dates: 05/09/1996 - Present

TN 10 (09-90)

POLICY

1. Employee Achievement Award

These are awards of tangible personal property for length of service or safety achievement. Sec. 74 of the IRC excludes from gross income for Federal income tax purposes employee achievement awards as defined in sec. 274(j) of the IRC. If they are excluded under the IRC, they are also excluded from the Social Security wage base.

2. Suggestion Awards

Are not excludable from gross income. These payments are part of the employment relationship and are additional wages for Social Security purposes.

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RS 01401: Wages
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RS 014: Wages
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RS 01403: Wage Evidence
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