Taxes must be withheld on “wages,” which include all cash and noncash payments for services performed by an employee.
Exclusions. Payments for some services, including the following, are exempt from withholding:
• Agricultural service for a farmer-employer performed on the farm
• Service not in the course of the employer's trade or business
• Religious service performed by ministers or members of religious orders
• De minimis fringe benefits
• Moving expense payments
• Golden parachute payments
• Employee-provided dependent care of up to $5,000 per year
• Travel advances or reimbursable expenses
• Employer-provided group life insurance
• Medical savings account contributions
Vacation pay received for the time of absence is treated as regular pay. Vacation pay received in addition to regular pay is treated as a supplemental wage pay for withholding purposes.
Mississippi’s income tax statute does not conform to the Internal Revenue Code, but the law ...