IRS healthcare amount paid by employer in pay stubs

[kytwell 179]

Beginning with the first paycheck of 2012, there will be a new notation in the Special Information section of employee paycheck stubs that represents the employer's share of the cost of health care. The Internal Revenue Service now requires that this amount be reflected on employee W-2 forms starting 2012. This notation on employee paychecks is for informational purposes only. Your pay will not be affected.

####### is this #######? Are we going to be taxed on this amount?

[^_^ 5,021]

Beginning with the first paycheck of 2012, there will be a new notation in the Special Information section of employee paycheck stubs that represents the employer's share of the cost of health care. The Internal Revenue Service now requires that this amount be reflected on employee W-2 forms starting 2012. This notation on employee paychecks is for informational purposes only. Your pay will not be affected.

####### is this #######? Are we going to be taxed on this amount?

No you won't be taxed. That is tax-exempt money your employer spends. If the tax exemption were to be withdrawn by Congress, your employer would end up paying the taxes on it (or, more likely, they'd just stop contributing to your healthcare).

Alt response: OMG OBAMA SUCKS I HATE HIM MAKE HIM GO AWAY TAX ME LESS LIBERTY OR DIE WAAAAAAAAAAAAAAAAH.

[kytwell 179]

Okay, I'm trying to navigate the IRS website now. I'm trying to understand why this is even now listed.

[^_^ 5,021]

Okay, I'm trying to navigate the IRS website now. I'm trying to understand why this is even now listed.

PPACA requirement. There is an excise tax (paid by the employer) on 'cadillac plans' and that number will be used to identify such.

[Gary and Alla 3,694]

Okay, I'm trying to navigate the IRS website now. I'm trying to understand why this is even now listed.

Because they want YOU to know how much your employer does for YOU. It is a public service of the IRS

The ONLY reason the IRS would want to have this information on a tax form of any type is to TAX you for the amount. Eventually.

PPACA requirement. There is an excise tax (paid by the employer) on 'cadillac plans' and that number will be used to identify such.

I was right again. having such legislation allows them to regulate exactly what a "Cadillac Plan" is. You may not even know you have one until they tax you for it.

Edited January 5, 2012 by Gary and Alla

[Obama 2012 1,714]

PPACA requirement. There is an excise tax (paid by the employer) on 'cadillac plans' and that number will be used to identify such.

which is absurd....

You buy a good plan and you have to pay taxes on it.... Ridiculous.

[slim 1,525]

I don't have health insurance. Will I see a big zero in that block?

[Usui Takumi 1,562]

I don't have this on my latest stub - is this a 50+ employee type requirement?

Edited January 5, 2012 by Sousuke

[DaveE 178]

It is to get you ready for when they tax it. My company offers as a benefit, free life insurance equal to two years salary. They pay 100% of the premium. However at the end of the year they have to show what it cost on the W2. I then have to pay tax on what the insurance cost, IRS calls it "imputed income".

[Mr. Big Dog 10,747]

It is to get you ready for when they tax it.

That would appear to be the case. If you receive $10K worth of tax free health care "subsidies" from your employer today, then at some point in the future, you will get a 10K raise. For tax purposes only, of course. The money is still going towards your premiums but you'll have to pay taxes on it.

[momof1 205]

My paycheck already looks like this anyway. My employers portion is added on to my gross pay as "rewards budget.". The full amount(my portion and theirs) is then deducted from the gross pay pre-tax. They give me $514 every two weeks snd they like to remind us all the time.

[Mr. Big Dog 10,747]

My paycheck already looks like this anyway. My employers portion is added on to my gross pay as "rewards budget.". The full amount(my portion and theirs) is then deducted from the gross pay pre-tax. They give me $514 every two weeks snd they like to remind us all the time.

The employer portion of my health care coverage has always been visible to me as well. Not on the pay stub but on my compensation profile.