We paid an employee during jury duty and kept the jury fees. How should payroll and the books reflect that?
Continuing an employee's salary during jury service generally remains wage compensation.
By AE Tax Advisors Team · Updated October 28, 2026
Continuing an employee's salary during jury service generally remains wage compensation. Jury fees turned over under an employer policy need separate handling rather than an unsupported reduction of reported wages. The employee may have a personal return adjustment for fees remitted to the employer under the applicable rules.
A specific business-owner situation
An employee receives normal weekly pay and gives the employer a court check for jury service. Netting the check against W-2 wages can misstate the salary actually paid.
Illustrative example, not a client result.
What to establish before filing
- Confirm the employer's jury-pay policy.
- Separate salary from court fees and expense allowances.
- Provide the employee evidence of amounts remitted.
Which fact changes the answer?
A fee retained by the employee differs from one required to be turned over while salary continues. Reimbursed court expenses need their own classification.
A mistake to avoid
Do not assume every amount on the court check is a jury fee rather than reimbursement.
Records that support the decision
- Payroll records.
- Court payment detail.
- Signed fee-turnover acknowledgment.
The decision to document
Keep payroll wages intact as appropriate and document the separate fee transaction for both parties' reporting.
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Related questions
- We bought a business and kept its employees. Must Social Security tax start over under the new EIN?
- An insurer paid our employee disability benefits. Who reports the sick pay on Form W-2?
Sources and editorial context
- IRS Publication 15: employer tax guide
- IRS Publication 15-A: supplemental payroll rules
- IRS Publication 15-B: employee fringe benefits
- IRS Publication 525: income and jury-duty fees
General educational information prepared with AI assistance. No individual professional review is claimed. Apply the relevant tax-year rules to the actual records. Editorial policy · AI disclosure.