Hi ... don't shoot the messenger here, but ...
From the IRS guide to fringe benefits,
Under IRC sections 105 and 106, employer-provided health benefits, including reimbursement and insurance, are generally excluded from the income of employees. This applies to any employer-paid system, whether the benefit is provided directly (i.e., through self-insurance) to employees or through an insurance provider or a trust. However, if the plan discriminates in favor of highly compensated employees, the amounts paid to those employees are subject to Federal income tax. IRC § 105(h)
Question, everything I'm seeing says that this would be subject to SS and medicare, what's your source on your Q, lets see if we can reconcile
OK just what I thought. . . now, do I need to enter anything in box 14? or box 12?
Just one sec
The entire amount reported as wages in Boxes 1, 3 and 5. Taxes withheld are reported in Boxes 2, 4, and 6.
Nothing in box 12 - Just to document (using process of elimination, here are the codes:
Osrry for the data dump, but easier to show that none of the codes apply
Box 14 is purely informational -
Box 14 (Other tax information( couuld be used to note 5000 of taxable fringe benefit)
From EA XXXXX XXXXX:
Your employer may report additional tax information in Box 14. If any amounts are reported, they will have a brief description of what the amounts are for. For example, union dues, employer-paid tuition assistance, or after-tax contributions to a retirement plan will be reported here. Some employers report certain state and local taxes in Box 14, such as State Disability Insurance (SDI) premiums.
Hope this helps:
Once more to recap, operating statute here is : IRC § 105(h) (reimbursement plans discrminating in favor of HC's)
And here's a copy of the IRS' "Taxable Fringe Benefit Guide" http://www.irs.gov/pub/irs-tege/fringe_benefit_fslg.pdf
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From my end it looks like you have been initializing for about 3 minutes, but you never come into the chat ... what I'll do if you don't appear here in the next few minutes id switch to the Question and Answer mode ... maybe that will help ... We can still continue a dialogue, just not in real-time as here ... i
Before I switch over, however, just to be sure you saw it ... Nothing in box 12, none of the code apply, as can see here. and you CAN use box 14 essentially to footnote that 5000 was taxable as a result of IRC § 105(h)
Chat CAN be a little glitchy sometimes. Switching over now ... you can ask any remaining questions there
Sorry, I had to leave chat for a while. I interpreted Pub 15-B, Fringe Benefit Overview, Table 2-1 to mean that these fringe benefits would not be subject to social security and medicare taxes. Right or wrong?
Did you get my reply? I interpreted Pub 15-B, Fringe Benefit Overview, Table 2-1 to mean that these fringe benefits would not be subject to social security and medicare taxes. Right or wrong?