Not all remuneration is wages

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Not all remuneration is wages. The US code below states that if 50% or more of the remuneration during a pay period is considered wages, then all of it must be considered wages. However, if less than 50% percent is not considered wages, then none of the remuneration is considered wages.

(e) Included and excluded wages

If the remuneration paid by an employer to an employee for services performed during one-half or more of any payroll period of not more than 31 consecutive days constitutes wages, all the remuneration paid by such employer to such employee for such period shall be deemed to be wages; but if the remuneration paid by an employer to an employee for services performed during more than one-half of any such payroll period does not constitute wages, then none of the remuneration paid by such employer to such employee for such period shall be deemed to be wages

So everyone is paid remuneration, but not necessarily wages. Only wages are taxable. Note, if one is a statutory U.S. citizen or elected to be treated as one, than it’s likely that all remuneration is always considered wages. Read other posts on this site about how to revoke the election to be treated as a resident alien or statutory U.S. citizen.

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