Ala. Admin. Code r. 480-4-2-.21

Current through Register Vol. 42, No. 7, April 30, 2024

Section 480-4-2-.21 - Wages And Value Of Remuneration Other Than Cash

(1)Code of Ala. 1975, § 25-4-16 of the law defines wages as "every form of remuneration paid or received for personal services including the cash value of any remuneration paid in any medium other than cash. The reasonable cash value of remuneration paid in any medium other than cash shall be determined in accordance with rules prescribed by the Director."

(2) Board, lodging, and any other forms of payment received or payable as remuneration for services performed by an employee, in addition to or in lieu of money payments, constitute wages. When deductions from cash payment for services have been made because partial payment was made other than in cash, the original full wage amount due shall constitute wages.

(3) The Director shall determine or approve the reasonable cash value of all payments in kind, and the cash value as so determined or approved shall be used for purposes of all contributions and benefit determinations.

(4) If a reasonable cash value for such board, lodging, or other payment is agreed upon in any contract of hire, expressed or implied the amount so agreed upon, if more than rates prescribed by the Director, shall be deemed the value of such board, lodging, or other payment in no case shall the reasonable cash value be less than the board and lodging rates prescribed herein.

(5) Until and unless in a given case a rate for board and lodging is determined to be otherwise by the Director, board and lodging furnished in addition to money wages, shall be deemed to have not less than the following reasonable cash value:

(a) Full board and room weekly...... $63.00

(b) Meals,

per week............................ 42.00

per meal............................ 2.00

(c) Lodging,

per week............................ 21.00

per day............................. 3.00

(d) The value of meals furnished an employee by an employer on the premises of an employer for its convenience is not "wages" and not reportable as such.

(e) The value of lodging furnished an employee by an employer for its convenience and as a condition of employment is not "wages" and not reportable as such.

(6) Remuneration for services rendered in any medium other than cash is not considered wages for agricultural or domestic services or for services not in the course of employers usual and normal trade or business (casual labor).

(7) Prior to January 1, 1986, gratuities or tips paid to an employee by an employer, from money left by a customer or patron, constitute wages and must be reported for the purpose of determining his contribution liability under the law; provided,

(a) the employer utilizes such money to enhance any employees' remuneration; or

(b) when the employer requires patrons to pay an amount as a service charge to be divided solely at the discretion of the employer; or

(c) to the extent any employer uses such tip or gratuity in meeting the minimum wage law. Provided, however, that the excess amount of tips received above the minimum wage requirement, unless otherwise meeting the requirement of wages, shall not be considered wages.

(d) On and after January 1, 1986, the amount of all tips received by a person while performing services which constitute employment as defined in Section 25-4-10, Code of Ala. 1975, as amended are "wages" and are reportable as such pursuant to Section 25-4-16, Code of Ala. 1975, as amended, provided the amount of tips is $20 or more in a month. This includes tips received by an employee directly from a patron or person and reported in a written statement to the employer, amounts charged to a customer as tips by the employer, added by the customer to a bill or statement (including credit cards used to pay the bill), or otherwise known to the employer and paid over to the employee by the employer.

(8) Wages paid include both wages actually received by the worker and wages constructively paid. Wages are constructively paid when they are credited to the account of or set apart for a worker without any substantial restriction as to the time and manner of payment or condition upon which payment is to be made and must be available to him so that they may be drawn upon by him at any time, and their payment brought within his own control and disposition, although not then actually reduced to possession.

(9) Wages payable means wages earned, including wages earned and paid as well as wages earned and unpaid.

(10) Wages will be assignable and reported in the calendar quarter in which they are paid.

(11) Back Pay Awards made to a worker resulting from a ruling by a governmental agency or an employer/union arbitration agreement are considered wages. These amounts will be considered taxable and reportable by the employer in the quarter during which the back pay is actually paid by the employer. For unemployment benefit monetary determinations the back pay amounts will be distributed over the quarters they would have normally been paid to avoid an unfavorable affect on a benefit claim. (See rule 480-4-2-.28 ).

Author: William E. Parsons

Ala. Admin. Code r. 480-4-2-.21

Statutory Authority:Code of Ala. 1975, §§ 25-2-7, 25-2-8, 25-4-111.