Taxable Wages

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August 25, 2024 3 min read Definitions

Supplemental Unemployment Benefits: Understanding Employer-Financed Payments for Terminated Employees

Finance Economics Supplemental Unemployment Benefits Employer-Financed Payments Terminated Employees Taxable Wages Income Tax Withholding

Supplemental Unemployment Benefits (SUB) payments are taxable wages provided by employer-financed funds to terminated employees which are subject to income tax withholding but exempt from Social Security, Medicare, and federal unemployment taxes.

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