Accounting, Payroll & Pension Issues/Employee Referral Programs

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Expert: - 8/11/2010


Question
Are employee referral programs always considered compensation and subject to payroll tax withholdings?  Is there ever a case when a payment for referring an employee not subject to payroll taxes?

Answer
What type of referral program are you talking about? We have an EAP (Employer Assistance Program) which covers counseling, mental and financial and it is covered under our medical cafeteria plan and is part of our insurance coverage. Referrals to an insurance program are not taxable.

Shirley

Accounting, Payroll & Pension Issues

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Shirley McAllister, CPP, PHR

Expertise

I can answer payroll questions, payroll tax questions, 401K questions. No stock option questions please and I have some knowledge of other pensions but am most familiar with the 401K pension. I can answer U.S.and Canada payroll questions proficiently and have a good general knowledge of UK and South Africa and some knowledge of Australia and New Zealand Payroll procedures. Please do not ask me homework questions I do not have time to answer them.

Experience

25 years with an international company in the Human Resources, Payroll and Payroll Tax areas.

Organizations
SHRM, APA, I.O.M.A.

Publications
I.O.M.A. and BNA

Education/Credentials
P.H.R., C.P.P., Canadian Payroll Administrator, Successfully passed APA class on UK Payroll Administration. Boise State University Human Resource Certification

Awards and Honors
APA Hotline Citation of Merit for last 8 years.

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