July 23, 2020
We pay our union employees vacation/holiday time weekly at $5 an hour, which is taxed and then deducted back out of the employee’s check. It is included in their gross taxable wage and our 941 reports. We are planning on including this $5 an hour in the payroll model rather than with our health insurance and pension payment or some other part of the application. Can you confirm this is the correct treatment?
Posted by Armanino Financial Advisory Team
Yes, this approach is correct.