1.45% Medicare tax - wages vs special expense
In this topic on stock options, distinction was made between wages and taxable special income, with respect to the FICA Medicare part A tax. That brought a question to mind. I didn't want to hijack the thread, so I opened this new one.
To get (what I think is) correct tax treatment of payroll deductions, I record my earnings as gross, enter the payroll deductions as excludable special expenses and, in the case of flexible spending account deductions, record those deductions again as non-taxable special income.
I'm under the impression I could record my salary as net but prefer to minimize use of crib sheets outside ESP. I'd rather have everything recorded explicitly so I don't stump myself later.
With that in mind, does my treatment of payroll deductions meet the assumptions of ESP's payroll tax logic?