Tax Question

[BW2010]

HR Block book
Fringe Benefits
Compensation or other benefits received by an employee that are not in the form of cash . some fringe benefits(for example accident and health plans and group term life insurance) may be excluded from the employees gross income and , therefore are not subject to federal income tax.

Maybe the "The devil is in the details"
What about the maybe excluded. I would think that this is for the accountant to do, not add it to the employees income and wonder if this is what is going on. Adding it and taxing it.

Bryant

 

[LGilmore]

I can't figure out if you're pitching me shite or agreeing with me.

Certain benefits are considered taxable events. Some are based on a distribution, others on the amount of benefit provided. So far, employer provided medical insurance is not considered taxable income in either premium or benefit dollars paid for the employee. So far.

 

[scagnt83]

HR Block book
Fringe Benefits
Compensation or other benefits received by an employee that are not in the form of cash . some fringe benefits(for example accident and health plans and group term life insurance) may be excluded from the employees gross income and , therefore are not subject to federal income tax.

Maybe the "The devil is in the details"
What about the maybe excluded. I would think that this is for the accountant to do, not add it to the employees income and wonder if this is what is going on. Adding it and taxing it.

Bryant

Traditional Group Health Insurance is not considered a "Fringe Benefit".

And it is not taxable to the employee or business.

The business owner has a HUGE liability on their hands if they have actually been doing this.

But I would guess that there is a miscommunication somewhere in this chain of info.

Have you actually seen a payroll report that shows this???
Or an employee check stub?

 

[somarco]

If this is a list bill, not a true group, the scenario you described would be accurate.