Payments to employees not reportable

Remuneration does not include the following, which are not subject to contributions and should not be reported:

Payments made by a sole proprietorship to the sole proprietor, to their spouse or minor (under age 21) child, and payments made by a partnership to the partners.

Any payment made under a plan or system providing for retirement, sickness, or accident disability, or medical or hospital expenses for an employee or an employee’s dependents, including amounts paid for insurance, annuities, or into a fund to provide for the payments (see Annual reports for exceptions).

Payments made by an employer, without payroll deductions, of taxes required from employees under the Social Security Act.

Insurance or annuity payments to an employee for retirement.

Payments made to an employee on account of sickness or accident disability after six complete calendar months following the month in which the employee last worked.

Payments from or to a trust described in IRC § 401(a) that is exempt from tax under IRC § 501(a).

Payments made to an employee, except vacation or sick pay, beginning with the month following the 65th birthday, for any period in which the employee did not actually work.

Dismissal payments (see Annual reports for exceptions).

Compensation paid to daytime students in elementary and secondary schools who work for other than nonprofit organizations or governmental or Indian tribal entities. This includes payments for working during vacation periods and holidays (see Annual reports for exceptions).

For household employers: payments to babysitters under 18 years of age.

Payments by certain organized camps for services of a student who is enrolled full-time in an educational institution.