Reporting Compensation
What Is Compensation?
A city employee’s compensation is their total earnings before deductions. If it is taxable, it is compensation.
Compensation includes:
- Wages
- Sick pay
- Vacation pay
- Bonus pay
- Severance pay
- Retroactive pay based on an adjustment or judgement
Are travel, car and uniform allowances compensation? Yes, if they are included as income on the employee's IRS form W-2.
Are reimbursements compensation? No, reimbursements are not considered compensation.
To download this information as a fact sheet, click here.