Salary and Wages

Wages paid generally means hourly or salary employees that you pay on a regular basis. Wages should be the gross amount paid before the deduction of any income or social security taxes. It does not include the amount of tax you pay as an employer, that is accounted for separately as payroll taxes. Wages should not include contract labor paid. It should include anyone who has worked for you during the year on a regular basis, even if they did not work all year or only for a short period.