Are benefits such as healthcare, 401k, and payment of state and local taxes included in the $100,000 per employee cap?
For purposes of calculating the $100,000 cap per employee. The compensation of $100,000 only applies to cash compensation and not to non cash benefits such as
Employer contributions to retirement plans such as 401k
Payment of group healthcare coverage including insurance premiums
Payment of state and local taxes assessed on compensation of employees.
Earlier versions of some documents provided differing information on this point. Please note the below is the official Question and answer as of April 10,2020.
Linked here and pasted below is the text from the official question and answer document published by the Department of the Treasury on April 10, 2020, which you should reference:
Below is the official question from Q7 as of April 10, 2020
7. Question: The CARES Act excludes from the definition of payroll costs any employee compensation in excess of an annual salary of $100,000. Does that exclusion apply to all employee benefits of monetary value?
Below is the official answer from Q7 as of April 10, 2020
Answer: No. The exclusion of compensation in excess of $100,000 annually applies only to cash compensation, not to non-cash benefits, including:
employer contributions to defined-benefit or defined-contribution retirement plans;
payment for the provision of employee benefits consisting of group health care coverage, including insurance premiums; and
payment of state and local taxes assessed on compensation of employees.
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Benefits Healthcare 401k Included in 100k Cap For more information, check out this related resource:
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