Skip to comments.Foxes Guard Hen House With New W-2 Reporting Requirement
Posted on 08/08/2012 1:03:10 PM PDT by 92nina
The 2010 health care bill includes a requirement that employers report on each of their employees Form W-2s the cost of health insurance they sponsor on behalf of that employee. This requirement was made optional for tax year 2011 (when it officially went into effect), and will be optional for small businesses (those with fewer than 250 W-2s) in tax year 2012.
The IRS has waived the W-2 reporting requirement for tax years 2011 and 2012 because of confusion surrounding the provision.
This is understandable, because employers usually use Form W-2 to report salary and wage payments to the IRS so that they can be withheld and taxed appropriately. In a changeup from the forms usual function, the new reporting requirement does not levy a tax on employees health benefits. Instead, its stated justification is to convey to employees the value of their health insurance, and to identify taxpayers who run afoul of the Individual Mandate tax and 40% Cadillac tax on comprehensive health plans.
Taxpayers should be uncomfortable with the implications of the W-2 reporting requirement, which portends higher taxes in the future. Reporting the value of employees health benefits opens the door to new taxes on these benefits in the future.
Rapacious lawmakers and bureaucrats are always eager for new streams of revenue (which explains such absurdities as the death tax and tax on Olympic medals due to the U.S.'s worldwide system of taxation), so the W-2 reporting requirement for health benefits may prove a stalking horse for higher taxes.
There is little reason to trust these same revenue-grabbers with personal information about what is, as of yet, an untouched sphere of our financial freedom.
10 Year Cost to Taxpayers
Joint Committee on Taxation: Negligible Revenue Effect
This content is provided by the Americans for Tax Reform Foundation.
Read more: http://atr.org/foxes-guard-hen-house-new-reporting-a7110#ixzz22zF1SjWM
All money rightfully to the government.
This contradicts other hidden employee expenses.
Example: SSI portion paid by employer, workers comp paid by employer.
These should show up also.
It's either all these or none.
>>Example: SSI portion paid by employer, workers comp paid by employer.
SSI and WC are mandatory, so they are “fair”. Health Insurance that is paid as part of an employee’s compensation package is “unfair” because not everyone gets it.
The Leftists will suggest taxing it as income once the costs of ObamaCare begin to hit. After all, it’s only “fair”.
When they decide they cannot get enough taxes to finance the debt to China by just charging us with income for the employer portion of health insurance premiums, they’ll make the benefits paid out taxable, too. So if you have $10,000 in medical expenses covered by your insurance, they’ll want tax on that. The kicker will be that no taxes will be withheld for either of these new “income items” from periodic paychecks, and people will get a shock to find out that they owe big time.
DDCost of employer-sponsored health coverage. The amount reported with Code DD is not taxable.[their emphasis]
The amount reported with Code DD is not taxable......YET
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