CHAPTER 7Employee Compensation: Salary, Wages, and Employee Benefits
As the economy emerged from the effects of the pandemic, a major concern for many small businesses has been finding and retaining employees. The tight labor market has required many businesses to change their compensation packages by increasing wages and offering a variety of fringe benefits and flexible work arrangements. Business considerations, such as a company's budget, drive decisions on pay and benefits. But the tax implications of what is given to employees should not be ignored.
If you are an employee of someone else's business, you do not pay compensation to another individual. You can skip most of this chapter and go on to look at other deductible expenses. However, you might want to review the areas covered to understand your employer's burdens and responsibilities for the wages and benefits paid ...
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