Includible Comp

[austin3515]

Includible Comp is basically defined as wages "includible in gross income." Can someone tell me if there is a good resource out there for what this means? Without some sort of a good resource, you would need a CPA to get some work done!! I was disappointed in the level of detail in the EOB on this topic.

Although my primary request is to find a good resource, in particular I am looking into ST sick-pay paid by a third-party, but included on the participant's W-2.

[Kimberly S]

I've always understood that only compensation paid by the employer was included, but your W-2 comment has me confused. Is the employer or the third party the payor on the W-2?

[Bird]

An example is New Jersey's short term disability plan. The state pays the benefits, but then the employer has to add the payments to the employee's W-2.

(I wouldn't mind getting hold of the brainiac who thought that was a good idea.)

Anyway, with input from this board, we decided it was appropriate to exclude those amounts from compensation. (When we know about it!)

[JanetM]

Bird, obviously some govt geek who thought he was being clever by saving the state lots of money on recordkeeping and reporting to IRS.

[Mike Preston]

If you are seriously interested in this topic, you should contact Sal Tripodi and ask for a copy of one of his prior publicatiions that went into great detail on compensation. I think it was nearly 100 pages discussing nothing more than how to detemine compensation under various definitions. I may be mis-remembering the number of pages. It certainly SEEMED like 100 pages.

It was either his ERISAViews publication or his ERISAUpdate publication. These are periodic newsletters that he publishes and are not part of his ERISA Outline Book.

[austin3515]

Are they obtainable?

[Guest SWH]

Austin,

Found a website that you can order the compesation Eviews from.

http://www.cyberisa.com/erisa_newsletter_form.htm

[austin3515]

Thanks! I can get it for just $40!