Internal Revenue Bulletin:  2009-18 

May 4, 2009 

EMPLOYMENT TAX


Table of Contents

Rev. Rul. 2009-11 Rev. Rul. 2009-11

Differential wage payments to active duty members of the uniformed services. This ruling provides that differential pay that employers pay to their employees who leave their job to go on active military duty is subject to income tax withholding, but is not subject to Federal Insurance Contributions Act (FICA) or Federal Unemployment Tax Act (FUTA) taxes. Additionally, the ruling provides that employers may use the aggregate procedure or optional flat rate withholding to calculate the amount of income taxes required to be withheld on these payments, and that these payments must be reported on Form W-2. Rev. Rul. 69-136 modified and superseded.


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