“Taxable income” means all salaries, wages, commissions, or other compensation including fees, sick pay, bonuses, tips, rents, profits from businesses including professional associations, partnerships, guaranteed payments to partners, disposition of a stock options, royalties, employer supplemental and unemployment benefits (subpay), wage continuation plans, dismissal or severance pay, incentive payments, property in lieu of cash, any other amounts received based on employment, depreciation recapture, officers’ compensation, golden parachute plans, contest prize and awards, gambling and lottery winnings. Individual Retirement Accounts and tax shelter plans (contributions by employees retirement plans) are not deductible by such employees. If such contributions are deducted by an employer from the earnings of an employee, such amounts are subject to tax. If an employer pays into a tax shelter plan on behalf of an employee in lieu of paying said amount as wages, said payments are considered additional compensation to the employee and are subject to tax. Contributions to a pension annuity or tax shelter plan by an employer are deemed to be other compensation subject to tax if the employee’s interest in or entitlement to the amount contributed is vested and non-forfeitable at the time of the contributions. Any non-qualified plans are subject to tax. All other deferred compensation plans.
(Ord. 2005-128. Passed 12-6-05.)