Posted on 12/23/2009 1:36:03 PM PST by vidbizz
Do employers currently list the healthcare benefits paid to an employee on their W2s? Trying to clarify an arguement. Thank you in advance. PS, I hope I put this thread in the right place.
Do you mean, if your employer pays 75% of your health insurance cost, is that shown as income to you on the W2? No.
Not on mine but they do list th 14,563.23 that Obama stole out of my check.
At this point, I would rather be robbed than pay more taxes; at least a robber won't lecture me and tell me that taking my money is for my own good.
And in addition to what NEMDF said, the W2 does not show what the employer has to pay for unemployment insurance, his half of you SS and other sundry fees everybody charges him to have you as an employee.
People have no clue as to the hidden fees the employer pays to have them on the work force.
No.
Correct. Workmen’s compensation insurance, in some instances bonding or license fees.
No. That’s a “Cafe 125” item.
What does that mean?
The guy I’m having an argument with says:
“Most if not all employeers list Healthcare and other bennies on the W2. For instance, Tribune and Post-Newsweek both list Pre Tax and Taxable witholding. However, I believe that at a one time in one of the proposed bills, there was a provision to do away with the pretax medical bennies.”
I said I don’t think so.
Some do list it, but it has an asterisk next to it, or something to identify that it’s not a taxed item. It’s a pre-tax deduction.
I’m not sure on W-2’s, but on pay settlements, all deductions must be shown. I’m looking at my Wife’s right now. It shows a summary total of Cafe 125’s but it does not break them out, nor is it taxed. The only reason for showing is so that you, and the IRS, knows why the totals don’t equal gross pay.
As far as “bennies” go, I’m not sure what he’s talking about. You can deduct the portion of your health premiums that you pay, up to a max of 7.5% of your adjusted gross income.
This is all covered in Bush’s Tax Relief and Health Care Act of 2006.
Speaking as someone who prepares W-2s for many types of entities, the answer is yes and no. Both of you win the argument.
bump
The amount shown on line 12 for health insurance is the amount deducted from an employee's pay check. It's useful in case your medical expenses exceed 7 1/2 % of adjusted gross income. At least 95% of the tax returns I prepare never get past that threshhold.
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