TN 10 (09-90)
RS 01402.205 Awards - Wages
1. Employee Achievement Award
These are awards of tangible personal property for length of service or safety achievement. Sec. 74 of the IRC excludes from gross income for Federal income tax purposes employee achievement awards as defined in sec. 274(j) of the IRC. If they are excluded under the IRC, they are also excluded from the Social Security wage base.
2. Suggestion Awards
Are not excludable from gross income. These payments are part of the employment relationship and are additional wages for Social Security purposes.