Discussion:Employee Share of Health Insurance
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Discussion Forum Index --> Tax Questions --> Employee Share of Health Insurance
| 13 January 2006 | |
| EMPLOYER WRITES CHECK FOR ALL HEALTH INSURANCE. EMPLOYEES PAY DIFFERENT AMOUNTS BASED ON THE DEAL THEY WORKED OUT WHEN HIRED. IS THE EMPLOYEE PORTION A PRE OR POST TAX DEDUCTION FOR INCOME AND FICA PURPOSES ON THE W-2. | |
| 13 January 2006 | |
| If employer has a pre-tax plan in place (ยง125 plan) , POP, etc. employee contributions are pre-tax, federal, state, local and FICA. If plan not in place - premiums paid by employees are all post-tax. | |
Mmstauffer (talk|edits) said: | 22 August 2007 |
| Please provide me with the source to prove the premiums paid by employees are all post-tax when a pre-tax plan is not in place. I have a client whose employee is requesting the "proof" and I have been unable to find the code section stating it. Thanks. | |
TheTinCook (talk|edits) said: | 22 August 2007 |
| Publication 15-B
I guess you could also use Sec. 125 since the option to use pre-tax money for health premiums is a matter of legislative grace, and that otherwise it would be included in gross income under Sec. 61 | |
| 23 August 2007 | |
| If the employer obtains proof of coverage and payment, the premiums are a tax-free fringe benefit under Sec. 106. See Rev. Rul. 61-146. No need to show on the W-2 form at all. | |
| 24 August 2007 | |
| The amount paid by the employer not reimbursed by the employee is a tax-free fringe benefit. The amount charged back to the employee is a post-tax deduction except when a Sec 125 plan is in place.
The "proof" comes under Sec 125 - you cannot withhold pre-tax except when a 125 plan is in place. | |
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