Housing taxable question
A couple questions:
We have a couple employees that will be doing a research internship. The stipend for the internship covers wages and housing. It is all run through Payroll. We will prepay for their housing, and deduct the housing from their pay.
- Would the housing portion of the stipend be considered supplemental wages?
- Do you see any issues with deducting the prepaid housing from their pay? I plan on giving them two pay entries, one for wages, one for housing (supplemental wages?), with a deduction for housing.
- Would I show the housing anywhere other than wages on their W-2?