[mla1169]

Ok, I am a fairly new accounting manager and of course have to get thrown whammies that you don’t expect to deal with!~

Employee passed away this week and is owed wages as well as vacation time. Reading online and specific to Sec. 691(a) as well as Rev. Rul 86-109 I think I understand but wonder if anybody has ever faced this situation:

Pay salary and vacation with a check payable to the beneficiary of xxx xxxxxxx, withholding only SS, FUTA and FICA. Add the earned wages to the W-2 only for social security wages and Medicare wages. Also send a 1099-misc for the taxes of the estate? that being the case what on earth would the T.I.N. # be on the 1099?

Yeah I know this is completely out of left field but if you ever have to do payroll you’ll remember the crazy message about paying after the death of a co-worker and want to do it right.

Thanks!

FAR- 77
AUD -49, 71, 84
REG -56,75!
BEC -75

Massachusetts CPA (non reporting) since 3/12.

[jtcali]

FUTA isn't withheld from the employee's paycheck. FUTA is an employer expense. Also, SS is a part of FICA so weird that they would say withhold SS & FICA. I wouldn't trust that article, I would find some solid info. The TIN would be the estate's FEIN/tax id number. Ask the beneficiary for the estate's FEIN. If the employee doesn't have an estate then just use thier social….

[Anonymous]

Triple post!

[Anonymous]

Triple post!

[Anonymous]

Do you do payroll in-house or use a third party processor? The company I used to work for used ADP and they were always super helpful if I had any unusual payroll items.

[mla1169]

Thanks I misspoke have to withhold social security and Medicare but his salary will be used in calculating out unemployment. I did call adp and the guy was less than helpful, told me to verify the state income tax treatment with the dor then call back and tell him how we want a template set up. Duh that's what I was asking lol!

FAR- 77
AUD -49, 71, 84
REG -56,75!
BEC -75

Massachusetts CPA (non reporting) since 3/12.

[Anonymous]

I thought FUTA was with held even if its the employers expense For example, IRS charges $76 and the employer matches that so $152 is with held from your paycheck. I HATE the IRS, another American ponzy scheme to me but w/e.

Did you try googling this? I think I read something or watched something about this online. I can ask my Acc Instructor for you.

[Author]

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