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Discussion Forum Index --> Tax Questions --> Employee Health Insurance
Drpcpa (talk|edits) said:
| 27 June 2007
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| Corporation currently covers 50% of cost for "family" policy for employees (10 to 15 of them). Due to high cost, they want to drop coverage down to 50% of "single" employee cost, and have employees pick up the balance. Any problems associated with this. Any paperwork need to be filed? Do we need to give employees notice before doing this?
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Sandysea (talk|edits) said:
| 27 June 2007
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| Really depends on if this is a cafeteria plan or if it is funded from after tax dollar reductions on an employees paycheck. Naturally, payroll needs to have documentation from the employee for the voluntary withholding of premiums and I would think it would be wise to have a period before it takes place....
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Death&Taxes (talk|edits) said:
| 27 June 2007
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| Back in the early 90s our C Corp had a policy stated in the minutes of the Board of Director to cover all full time employees and their families. I was the only married person; my partner's long term partner had her own coverage while Secretary was unmarried. Then Secretary, unmarried, became pregnant and we ended up with additional premium for her to cover her child. Lucky for us her boyfriend convinced her to move to FLA. The week we hired a new office manager we held another Board meeting and passed the requirement that employees pay for family members. So I raised my pay to do so, for we were not going to get hit again.
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Drpcpa (talk|edits) said:
| 27 June 2007
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| Its under a Premium Only Plan, so it is funded with pretax dollars by the employee. I'm thinking we only have to document in our files. What I was going to suggest to the client is that they present this to their employees, and give raises to cover the difference for the employee so they end up in the same position they currently are in. However, future insurance increases will be born by the employee.
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Natalie (talk|edits) said:
| June 28, 2007
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| You might want to check with Wisconsin's law on this. Making an employee pay for 50% of the single premium would not fly in Hawaii. The maximum an employee is allowed to contribute to the single coverage is 1.5% of gross wages.
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