Description

Cash payments to employees, whether salary, bonus, or commission, are generally straightforward. Salary is typically calculated per hour, month, or year.

In this course, we will explore how these payments have broader financial implications—triggering a business deduction for the employer, generating taxable income for the employee, and contributing revenue to the Treasury. Alongside federal, state, and local income taxes, employers and employees bear the burden of employment taxes like FICA, FUTA, and SUTA.

Generally, Fringe benefits may be statutory (i.e., a code section designation) or incidental (i.e., listed within a code section as a group). Some benefits are excludable, others are partially includable, and others are deferred (i.e., retirement benefits).

Key topics covered:

• Financial impact of salary payments
• Overview of employment taxes
• Fringe benefits and tax implications
• Statutory vs. incidental benefits
• Challenges for small businesses

Tony Curatola | PhD, MBA

Dr. Curatola is the Joseph F. Ford Professor of Accounting at Drexel University in Philadelphia and is one of the 2024 Top Educators award recipients. He was the Tax Column Editor for Strategic Finance between 1992 and 2024. He has served as the editor of the Journal of Legal Tax Research and currently serves on the editorial review board of several journals, and has held a variety of leadership positions, including current global service with the Institute of Management Accountants.