1. (1) A bonus is a payment given to an employee in addition to usual wages.

   1. (a) A bonus paid as a direct result of past performance of service for a specific period before the separation is not reportable with respect to any week after the separation.
   2. (b) If the payment is made contingent upon termination it will be considered a severance payment.
   3. (c) Payments given at the time of separation that are based on years of service are reportable severance payments pursuant to with Subsection 35A-4-405(7).
2. (2) If a claimant is hired to start working on a certain day and the employer puts the claimant on the payroll as of that date, the claimant is considered employed and those wages are reportable, even if the work is not available as of that date.

3. (3) Payment made in consideration of training that is required by the employer is considered to be reportable income unless shown to be:

   1. (a) expenses necessary for school, including expenses for tuition, fees, and books;
   2. (b) travel expenses;
   3. (c) actual costs for room and board that are necessary expenses for the schooling; or
   4. (d) exempt from income tax liability.

4. (4) Payment to a claimant under a contract is reportable income if:

   1. (a) the payment is made for the express purpose of the claimant's being available to an employer; and

   2. (b) there are limits placed upon the claimant:

      1. (i) as to how much earnings, if any, the claimant may earn while receiving payment; or
      2. (ii) on the time the claimant must be available to the employer.

5. (5) Payments in kind are reportable, including the cash value for meals, lodging, or other payment unless the meals and lodging are excluded from the definition of wages by the Internal Revenue Service under the following conditions.

   1. (a) Meals.

      1. (i) Meals must be furnished:

         1. (A) on the business premises of the employer;
         2. (B) for the convenience of the employer;
         3. (C) without charge for substantial non-compensatory business reasons,; and
         4. (D) not intended as additional compensation.

      2. (ii) Substantial non-compensatory business reasons will be limited to meals which are provided:

         1. (A) to have employees available for emergency call;
         2. (B) to have employees with restricted lunch periods; or
         3. (C) because adequate eating facilities are not otherwise available.

   2. (b) Lodging.

      1. (i) Lodging must be furnished:

         1. (A) on the business premises of the employer;
         2. (B) as a condition of employment; and
         3. (C) for the convenience of the employer, for example, to have an employee available for call at any time.
6. (6) Pensions that do not meet the criteria in Section R994-401-203 are not reportable income.

KEY: unemployment compensation, benefits

Date of Last Change: April 21, 2022

Notice of Continuation: June 9, 2022

Authorizing, and Implemented or Interpreted Law: 35A-4-401(1); 35A-4-401(2); 35A-4-401(3); 35A-4-401(6)