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RD, Certified Public Accountant (CPA)
Category: Tax
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Experience:  CPA, MBA, Over 10 yrs of experience in tax planning and business consulting..
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I have employees who have pre-taX and after tax AFLAC INSURANCE

Resolved Question:

I have employees who have pre-taX and after tax AFLAC INSURANCE from their weekly check , now I am printing thier w-2 forms but i do not see the amount deduct through the year I need to know which is the correct box and code for this insurance and which accounts affect, i really need help
Submitted: 5 years ago.
Category: Tax
Expert:  Ed Johnson replied 5 years ago.

Dear florecita,

 

Typicaly pre-tax should go into box 12 subject to FICA but not federal taxes.

 

After tax should go into box 14 subject to federal taxes and FICA.

 

However, please tell me more about this.

 

Do you know for certain if your plan is a qualified plan? It sounds like it is, but I need to know if it is a qualified section 125 plan. If you do not know, please give the person a call who helped set this up for you and find out.

 

What do you mean by accounts affect?

 

what software do you use for payroll and accounting?

 

 

Customer: replied 5 years ago.

about your first question I do not know but we are using Quickbooks probably when we create the payroll item was incorrect because the w-2 don not show nothing in box 12 or 14. Mr Johnson please help mi is my first time with this thing and I have to give to the employees their w-2

Expert:  Ed Johnson replied 5 years ago.

Dear florecita,

 

have you already sent the W-3's and transmittals to the IRS?

 

Which quickbooks version do you have?

Customer: replied 5 years ago.
no yet Mr Johnson, I want to be sure that everything is ok before we send the W-3
Expert:  Ed Johnson replied 5 years ago.

Dear Forecita,

 

OK so tell me what version of Quckbooks are you using?

Customer: replied 5 years ago.

Quickbooks PRO

Expert:  Ed Johnson replied 5 years ago.

Dear florecita,

 

I am working on your answer. I appreciate your patience.

 

Can you tell me if you are filing as an S-corp? And are you or anyother share holders 2% owners?

Customer: replied 5 years ago.
IS AND LLC AND WITH 2 OWNERS CEO 60% AND COO 40%
Expert:  RD replied 5 years ago.

I have been asked by the other expert to assist you with your question.

 

Are the owners also the employees and having health insurance premiums deducted? Are they on payroll? Is the LLC filing as a partnership or as a S Corp?

Customer: replied 5 years ago.

NO THEY NOT, THEY ARE NOT IN PAYROLL, THEY FILLING 1065

Expert:  RD replied 5 years ago.

Ok.

 

Pre-tax insurance payment from the payroll will not be subhect to FICA, Medicare or federal withholding and hence you will not see that on W-2 wages box 1, box 3 or box 5.

 

After tax insurance premiums will be deducted from the payroll and will be subject to FICA, medicare and federal withholding. There is no tax benefits to such deductions. So this would be included in box 1. box 3 and box 5. It may or may not be reported as additional information on Box 14.

 

 

When you set it up in Quickbooks-

 

Pre-tax premiums will be set up under payroll items as Insurance premium-health- pre-tax

 

and

 

Post tax premiums will be set up under payroll items as insurance premium-health-after tax

 

If you have payroll subscription in your Quickbooks and if the payroll items are correctly set up than the W-2 should be correct in most cases

 

Let me know if you have any question.

 

Please note: This advice is provided with the understanding that all the relevant facts have been provided by you. Any change in facts might affect the advice given and hence may not be relied on in such cases. Nothing contained in this reply was intended or written to be used, can be used by any taxpayer, or may be relied upon or used by any taxpayer for the purposes of avoiding penalties that may be imposed on the taxpayer under the Internal Revenue Code of 1986, as amended.

Customer: replied 5 years ago.

No Mr. Johnson I really appreciate your help. I want to work with you again

Expert:  RD replied 5 years ago.
Did you have any question with respect to the reply posted?
Customer: replied 5 years ago.

no thanks I am just say if I have any question in the future Thanks again

Expert:  RD replied 5 years ago.

Ok. Thanks I appreciate it.

 

Please accept the question if that satisfies your requirement and do leave a feedback.

 

RD, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 8784
Experience: CPA, MBA, Over 10 yrs of experience in tax planning and business consulting..
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CPA, MBA, Over 10 yrs of experience in tax planning and business consulting..