Are all employee wages subject to federal employment taxes?
All wages are subject to federal employment taxes unless the payments are specifically exempted from one or more of the taxes under the Internal Revenue Code. Wages subject to federal employment taxes generally include all pay that you give to an employee for services performed. The pay may be in cash or in other forms. It includes salaries, nonqualified deferred compensation, vacation allowances, bonuses, commissions, and fringe benefits. It does not matter how you measure or make the payments.