Is it Taxable or Not???
scottofstead
5 Posts
My employer is an insurance agency in Washington State. One of the perks we provide our associates is that we reimburse the amount of the commissions they would have paid on their personal insurance if they buy it through our agency (auto/homeowners/liability/etc.). Those amounts have always been reimbursed through payroll, and taxed as additional income.
Now I've got a couple of people challenging that practice, and I'd like to hear from anyone out there who can tell me if this should be considered additional income (and therefore taxable) or if it's just essentially an expense reimbursement, as one of our associates is claiming.... Thanks for your help!
Now I've got a couple of people challenging that practice, and I'd like to hear from anyone out there who can tell me if this should be considered additional income (and therefore taxable) or if it's just essentially an expense reimbursement, as one of our associates is claiming.... Thanks for your help!
Comments
From what I remember of my tax class yes. You want to include the commissions because an insurance agent has to include in income commissions earned on writing their own policies and this would also have the same effect. I hope that I have helped you out and not confuse you.