"Wages" means all payment for services you perform for your employer. Wages do not have to take the form of cash. The cash value of all compensation paid to you in any form other than cash is also considered wages (unless the form of payment is specifically not covered under the Social Security Act).
Wages include bonuses, commissions, fees, vacation pay, cash tips of $20 or more a month, and severance pay.
Types of income that are not wages include capital gains, gifts, inheritances, investment income, and jury duty pay.
Last Revised: March, 2001