Accounting, Payroll & Pension Issues/Health Care Value Reporting on W-2

Advertisement

Expert: - 3/17/2011


Question
Below is an example of how I have interpreted the value of health care that is to appear on employee's W-2's:   
Total cost of health care (employer & employee portion) less 2% for admin costs permitted under cobra.

Please let me know if this is correct.

Answer
As I understand it if you are a self insured employer you can deduct the 2% cobra administration fee. If you are not a self insured employer you may not.

Health care includes HRA but not employee deductions to FSA.

Dental and vision are not included if they are in stand alone plans but if they are with the medical carrier they are also included.

Disability insurance is not included.

I do not think all the rules are ironed out yet. I hope HHS gets it done soon so we will all know what we are doing.

Shirley

Accounting, Payroll & Pension Issues

All Answers

Answers by Expert:

Ask Experts

Volunteer

Shirley McAllister, CPP, PHR

Expertise

I can answer payroll questions, payroll tax questions, 401K questions. No stock option questions please and I have some knowledge of other pensions but am most familiar with the 401K pension. I can answer U.S.and Canada payroll questions proficiently and have a good general knowledge of UK and South Africa and some knowledge of Australia and New Zealand Payroll procedures. Please do not ask me homework questions I do not have time to answer them.

Experience

25 years with an international company in the Human Resources, Payroll and Payroll Tax areas.

Organizations
SHRM, APA, I.O.M.A.

Publications
I.O.M.A. and BNA

Education/Credentials
P.H.R., C.P.P., Canadian Payroll Administrator, Successfully passed APA class on UK Payroll Administration. Boise State University Human Resource Certification

Awards and Honors
APA Hotline Citation of Merit for last 8 years.

©2012 About.com, a part of The New York Times Company. All rights reserved.