What Are Wages?

The Act defines wages as "all remuneration for personal services, including commissions and bonuses, and the cash value of all remuneration in any medium other than cash."

Wages include:

1. hourly wages, salaries, and commissions
2. meals, lodging and other payments in kind
3. tips and gratuities
4. remuneration for services of an employee with equipment
5. vacation pay and sick pay
6. separation or dismissal pay
7. bonuses and gifts
8. payments in stock
9. contributions to Deferred Compensation Plans, including 401K plans

Wages do not include:

1. Any payment made to, or on behalf of, an employee under a cafeteria plan (prior to 1989 these payments were taxable). This exclusion is limited to any "qualified (non-taxable) benefit" provided under a cafeteria plan as defined by Section 125 of the Internal Revenue Code. However, payments made under a 401(k) plan are wages subject to the Utah Employment Security Act and must be reported whether or not part of a cafeteria plan.

2. Meals and lodging provided on the employer’s premises and for the convenience of the employer. Meals and lodging will be considered to be for the convenience of the employer if there is good business reason for providing them. Good business reasons include the following:

   1. To have employees available at all times or for emergencies.
   2. Employees have a short meal period.
   3. Adequate eating and lodging facilities are not otherwise available.

3. Payments made by the employer to a group of individuals in his employ into a fund to provide for the following:

   1. Retirement
   2. Medical or hospitalization expense, and
   3. Death of an employee, provided the employee does not have the right to any portion of money placed in the fund at termination of the plan, or if the employee terminates employment with the employer.

4. Reimbursement and advances for bona fide, ordinary and necessary employment related expenses. The Department may require an accounting of the actual expenses or may determine whether the expenses are reasonable and necessary.

5. Employment related training allowances (example: school tuition and fees). However, payments for services performed as part of the training, such as on-the-job training, are wages.

6. Remuneration paid to directors of a corporation for director services (i.e. attending board of directors meetings). Director services do not include managerial services or other services which are part of the routine activities of a corporation.

7. A fee paid to an individual for the referral of a potential customer (finder’s fee) provided that the transaction is in the nature of a single or infrequent occurrence and does not involve a continuing relationship with the person paying the fee.

8. Supplemental Unemployment Benefits (SUB) if they meet the requirements specified in Internal Revenue Service Revenue Ruling 56-249, 58-128 and 60-330. Because of the complexity of the factors involved, employers should request a declaratory ruling from the Department on their specific SUB plans.