Ok, I’m back!
The client is concerned about the tax management for this imputed income automation.
They want some clarification on making sure the employees are not getting paid the amount we send to Deel, that they aren’t paying the taxes on that amount, and that Deel is automatically covering the taxes for those employees.
They want guidance and clarification on what steps need to be taken when setting up the codes and categories on their Deel platform to make sure this happens.
This is for non-contractors, so we’re using the Create Adjustment endpoint.
For more context, the client is using Awardco to award points to employees, and those employees are spending the points on he Awardco platform. This is considered taxable “imputed income”, and should not added to their paychecks when sent to Deel.
E.g. Employee receives 100 points in Awardco, and spends it on a $100 gift card, the client needs to track that $100 as imputed income and tax the employee based on that extra $100 ‘earned’, but in this particular case the client is covering the taxes for that employee.
If there are support docs anywhere that walk through this, I’d be happy to read through them.