CA apportionment payroll factor – Severance Costs

Forum|Forum|5 years ago
September 9, 2020
1 reply
8 views

Hi,

A company i'm working on has more than 50% of gross income from qualified business activities. Does anybody here know if we include severance costs into the CA apportionment payroll factor?

Here it CA FTB's instructions for payroll factors:
"Compensation – means wages, salaries, commissions, and any other form of remuneration paid to employees for personal services. Payments made to an independent contractor, or any other person not properly classifiable as an employee, are excluded."

I'm trying to figure out if that includes severance.

Thanks.

This topic has been closed for replies.

sjrcpa

Level 15

I don't see why you wouldn't include it. It is "wages, salaries, commissions, and any other form of remuneration paid to employees for personal services"

They earned the severance pay by virtue of their providing years of service.

Plus you're talking about CA. They'll tax as much as they can and go for more.

The more I know the more I don’t know.

A

Anonymous

Thanks. I decided to include that. I definitely agree with your view on CA haha.

sjrcpa

Level 15

You're welcome.

The more I know the more I don’t know.

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