Tax Question
- Thread starter BW2010
- Start date
- 15,041
Unless there is something strange about the plan, it isn't taxable to the employees. Additionally, the employer should be taking a deduction for the premium on his taxes.
Are you certain of that? If they are both the employer and the employees are paying through the nose. Employer provided health benefits are not taxable to the employee (FICA, state, & fed) and are deductible expense for the employer.
- 4,132
Bryant,
Are you sure? Is this relayed information from the owner? Have you spoken to the tax person?
Tread softly here because if what you've described is correct and that person is taking "taxes" out and not just the employee's portion of their healthcare premium, then they are pretty dam stupid. Usually with stupidity you'll find alot of pride. Be careful in how you approach this matter.
I do think it's been relayed to you incorrectly. The first question I would ask this tax preparer is "do you send this collected tax into the IRS?"
I think it's a communication error.
Are you sure? Is this relayed information from the owner? Have you spoken to the tax person?
Tread softly here because if what you've described is correct and that person is taking "taxes" out and not just the employee's portion of their healthcare premium, then they are pretty dam stupid. Usually with stupidity you'll find alot of pride. Be careful in how you approach this matter.
I do think it's been relayed to you incorrectly. The first question I would ask this tax preparer is "do you send this collected tax into the IRS?"
I think it's a communication error.
- 1,459
Very true, tread carefully. If that person has the trust of your client, they may try to shut you out immediately before you make them look bad.
That being said, most likely a miscommunication.
- Thread starter
- #7
Thanks for all the help. I will pass this information on! This relayed information and the tax guy is an ex IRS person. Yes the tax guy was challenged and is having second thoughts. I took the HR Block course and knew I read the law correct, The tax codes are very complicated.
Bryant
Bryant
- 4,096
I have never heard of anything like this.
- 7,790
Ask for the citation in the Internal Revenue Code or the pertinent Revenue Rulings.
- 4,132
Could be he's just ahead of the Obama curve and is practicing what is coming down the pike. Benefits as taxable income.
If you are really new and not experienced in employee benefits it would benefit you to partner up (can be behind the scenes) with somebody who is more seasoned as some benefits are considered taxable income to certain parties in certain situations.
The devil is in the details, get as much information as you can before you challenge anything. Then do the homework. Don't just rely on your H&R block experiences.
If you are really new and not experienced in employee benefits it would benefit you to partner up (can be behind the scenes) with somebody who is more seasoned as some benefits are considered taxable income to certain parties in certain situations.
The devil is in the details, get as much information as you can before you challenge anything. Then do the homework. Don't just rely on your H&R block experiences.
