Health insurance premium added to W-2?

[clhcpaca]

My boss made the remark today that starting in 2011, the health insurance premium paid by an employer will be added to the W-2. Is this true? Would it be added to taxable wages?

I am a CPA and did some research but cannot find anything about this. Any websites? Any assistance would be greatly appreciated.

Thanks, Cindy

 

[ajk912]

I think the jury is still out on how ObamaCare will be paid for. I just did a research paper on it, and did not come across this statistic but who knows. I would not be suprised if it was true. I thought what your boss was talking about was what they were talking about in the debates..remember? John McCain was saying that healthcare would be taxed at the employee/employer level, but you would get a $5000 credit..I could be wrong, but I haven't heard anything about it since?

 

[Christine]

I think the jury is still out on how ObamaCare will be paid for. I just did a research paper on it, and did not come across this statistic but who knows. I would not be suprised if it was true. I thought what your boss was talking about was what they were talking about in the debates..remember? John McCain was saying that healthcare would be taxed at the employee/employer level, but you would get a $5000 credit..I could be wrong, but I haven't heard anything about it since?

So far, there has been no more talk about taking employer-paid premiums.

They could just be adding it to the W2 to make it more detailed about what an employer pays. For instance, my husband works for a union and his employer pays "working dues" for him (my husband also pays dues). These working dues, paid by his employer, are on his W2, yet we never get taxed on them. But there is a block for them. I think it shows the IRS how much the employer pays for something. It probably helps with the cross check when they compare what the employee gets paid on his behalf against what the employer reports on his/her own tax return.

 

[clhcpaca]

I couldn't find anything on the Official Health Reform website. Of course, he does not do payroll, but he is very good about keeping up with income tax changes. It just kind of surprised me when he mentioned it. I was wondering if it would be a W-2 box 12 item, alot of them are not included in gross wages.

Cindy

 

[Pembo]

I got one of those mass foward emails on this. Snopes has some info http://www.snopes.com/politics/taxes/HR3590.asp

 

[clhcpaca]

Thanks for the info. I read further down and found a link to the actual report. Most people would not be taxed; the amount would just show up on the W-2.
Thanks, Cindy

 

[M5ward]

Employer-funded benefits would appear on the W-2 form but will NOT be included in taxable income.

 

[WDWorBUST]

They will not be initially taxed. However they may be used to calculate excise tax later....I want say 2018ish...unless of course we can get rid of the whole stupid program before then.

 

[aprilgail2]

Employer-funded benefits would appear on the W-2 form but will NOT be included in taxable income.

Whew thank goodness!! My employer prices my benefits that they pay as over $10,000.00 !! Sure don't want to have that added to my taxable income!!!!

 

[DawnCt1]

They will not be initially taxed. However they may be used to calculate excise tax later....I want say 2018ish...unless of course we can get rid of the whole stupid program before then.

We can only hope!

 

[Carly_Roach]

They will not be initially taxed. However they may be used to calculate excise tax later....I want say 2018ish...unless of course we can get rid of the whole stupid program before then.

Hopefully by 2018 we'll have Universal Healthcare from the government and there will be NO employer paid healthcare.

 

[golfgal]

Hopefully by 2018 we'll have Universal Healthcare from the government and there will be NO employer paid healthcare.

Be careful of what you wish for--ask our Canadian and UK friends what their taxes are like.

 

[abdmom]

This Canadian's taxes dropped significantly after moving back to Canada from the U.S. My teacher's salary doubled.

 

[golfgal]

This Canadian's taxes dropped significantly after moving back to Canada from the U.S. My teacher's salary doubled.

$40,000

under $40K

$150K

http://www2.parl.gc.ca/content/LOP/ResearchPublications/prb05107-e.htm

Add universal health care to our taxes and YIKES

 

[LukenDC]

The value of the health insurance premiums will be added to the W-2s for tax year 2011 for information purposes. Most people have no idea how much their insurance actually costs and this requirement is designed to help Americans become more knowledgeable consumers.

 

[BunsenH]

I resent being informed of something that I prefer to pretend does not exist!

 

[GeorgeG]

Realistically, benefits like any portion of health insurance provided by an employer is considered part of our income. Even a company vehicle that you take home is considered income unless you pay a fee to cover the commute between home and office. Even if most people aren't going to be taxed on health benefits, it sure looks like it's being set up for that sometime in the future. Politicians love to spend money that isn't theirs.

 

[Christine]

Even if most people aren't going to be taxed on health benefits, it sure looks like it's being set up for that sometime in the future. Politicians love to spend money that isn't theirs.

I believe the McCain/Palin ticket proposed this. At least I thought I *heard* that during the debate and read it in the papers. They wanted to tax the employer payments toward insurance premiums and then give a tax credit back in some way...

 

[wdwfan16]

Realistically, benefits like any portion of health insurance provided by an employer is considered part of our income. Even a company vehicle that you take home is considered income unless you pay a fee to cover the commute between home and office. Even if most people aren't going to be taxed on health benefits, it sure looks like it's being set up for that sometime in the future. Politicians love to spend money that isn't theirs.

Bingo.

McCain did discuss this during the elections. Congress has been talking about this as a way to fund national health care. They want to tax the "Cadillac" policies. How best to find them but on an employees W2?

It will not be taxed in 2011 but soon after I expect it will be taxed.

I believe that Congress wants to get rid of the "Cadillac" plans so that NHC looks more appealing to the general population. When an employee finds out they have a $20K (this is what many cost) and now owe $5K in taxes they will change their mind about NHC.

 

[Darsa]

So, um, as of August 1st, should I then no longer be interested in the Health Care reform, since my family will be covered by my DH's new employer's health insurance?

I remember being intrigued by the program as my diabetic husband and teenaged daughter were without any kind of health insurance for over a year... hoping that it would help them out somehow. Luckily nothing has happened to them health-wise in that time, so I guess I should count my blessings.

I certainly don't pretend to know the inner workings of any political anything; I vote and try to do my homework beforehand, but I'm certainly NOT anything like politically savvy. So I rarely venture an opinion in this area; hopefully I haven't offended anyone, it was definitely not intentional.