Form Rt-800002 - Employer Guide To Reemployment Tax (Page 9 of 18) in pdf

quarter. The successor can count the $5,000 in

applicable in determining the “employer-employee

the first quarter in determining the taxable wage

relationship” apply.

base. Therefore, the successor will only have to pay

Taxable Wages

reemployment tax on $2,000 for the second quarter.

•

Commissions are taxable, except real estate

On occasion, multi-state employers will have

agents, insurance agents, and barbers paid

employees who perform services in another state

solely by commission. If paid by salary

and then transfer to Florida. The employer can take

only, or by salary and commission, both are

credit for wages reported to another state up to

taxable and the exemption does not apply.

$7,000, when calculating taxable wages reportable

•

Bonuses.

to Florida.

•

Back pay awards.

Example: An employee earns $5,000 in the first

•

Cash value of all remuneration paid in any

quarter in the state of New York and then is

medium other than cash.

transferred to Florida. While in Florida, the employee

•

Corporate officers’ wages - compensation

earns $4,000 in the second quarter. As the employer

other than dividends on shares of stock and

has already paid tax on wages of $5,000 to New

board of director fees is presumed payment

York, the tax payment to Florida would be based

for services performed.

on wages of $2,000, with the balance being excess

•

Wages of shareholder-employee of

wages. Use the Employer’s Quarterly Report for

S corporation - Also, all or part of the

Out-of-State Wages (RT-6NF) to report out-of-state

distribution of income paid to a shareholder-

wages.

employee who is active in the business and

performing services for the business may be

Annual Filing Option

considered wages.

Employers of employees performing domestic

services have the option to elect to report wages

•

Tips, if received while performing services

and pay tax annually, with a due date of January 1

which constitute employment and are

and a delinquency date of February 1. In order to

included in a written statement furnished to

qualify for this election, the employer must employ

the employer, pursuant to s. 6053(a), Internal

only employees who perform domestic services, be

Revenue Code (IRC).

eligible for a variation from the standard rate, and

•

Cash value of vacation facilities, club

apply for this program no later than December 1 of

memberships, and tickets to events.

the preceding calendar year.

•

Financial planning assistance and retirement

counseling fees.

Reporting Wages

As a general rule, if the work promotes, advances,

•

Nonqualified stock bonus incentive plan

or aids the employer’s trade or business and is not

contributions made by the employer.

performed by a recognized independent contractor,

•

Awards, gifts, and prizes over $25.

the services are considered to be covered

•

Interest from below market interest rate

employment and the wages are taxable regardless of

loans.

the amount of time employed and/or the amount of

•

Excess employee discounts.

earnings.

•

Cash value of meals and lodgings not for the

Casual labor is work performed that is not in the

employer’s convenience.

course of the employer’s regular trade or business

•

Cash value of prepaid group legal services.

and is occasional, incidental, or irregular. Casual

•

Golden parachute payments.

labor should not be confused with temporary or

•

After-death payments for wages earned prior

part-time employment. Temporary or part-time

to death.

employment is taxable, whereas casual labor is not.

•

Cash value of automobile for personal use.

A corporation cannot have casual labor since all

•

Cash value of air transportation for personal

activities for a corporation must be in the course of

use.

the corporation’s regular trade or business.

•

Wages of children or stepchildren working for

When determining whether or not payments

a corporation.

constitute wages, and are reportable for

•

Wages of children or stepchildren working

reemployment tax purposes, the common law rules

Department of Revenue, Employer Guide to Reemployment Tax, Page 9

Form Rt-800002 - Employer Guide To Reemployment Tax Page 9

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