Are Zingage awards subject to payroll taxes?

Last updated: June 18, 2025

Context

When providing Zingage awards to caregivers, employers need to understand their tax obligations and ensure proper payroll tax reporting for these incentive payments.

Answer

Zingage awards are generally considered taxable compensation and are subject to payroll taxes.

Please consult with your payroll provider or tax professional to ensure proper setup and handling of Zingage awards in your payroll system.

As an employer, if you will be taxing Zingage awards, generally you should consider:

  1. Including Zingage award amounts in employees' regular payroll processing

  2. Withholding appropriate federal, state, and local income taxes

  3. Paying and reporting employer payroll taxes including:

    • Social Security tax

    • Medicare tax

    • Federal and state unemployment taxes

  4. Including award amounts on employees' W-2 forms at year-end

Please consult with your payroll provider or tax professional to ensure proper setup and handling of Zingage awards in your payroll system.