AboutJohn L. Tidwell Expertise Unemployment tax law both state and federal; determination of employer employee relationship; the usual 20 commonlaw factors for making that determination; and what makes me a liable employer.
Experience Over 20 years of field audit experience with a state agency
Organizations none
Publications none
Education/Credentials Degree in Accounting from Falls Business College
Expert: John L. Tidwell Date: 7/8/2008 Subject: health care premium
Question QUESTION: Our Company offers health insurance to the employees - the company pays most of the insurance cost and passes a small portion of the insurance cost to the employees - my question is - the portion that the employee pays towards the cost of insurance- is it tax exempt(pre-tax) in the employees pay checks. (we do not have a 125 plan)
ANSWER: Teresa:
Ask your human resource person if your part of the insurance cost is included in the 125 Plan.
John
---------- FOLLOW-UP ----------
QUESTION: next question: under the tax pub 15B- frings benfits - health benfits are excluded from taxes - if the empoyer providers health benfits to employees the it is not inocime - so can we say that if the employer wants employees to pay a protion of the benfit isd the protion employees are to pay also excluded form taxes???? the pub 15B does not talk about both employer and employee sharing the cost of the benefit.
Answer Teresa:
Any premiums paid by the employer is considered an expense against income. If a formal plan is in place, such as a section 125 (cafeteria) Plan, an employee can us pretax dollars to pay their premiums. Otherwise, the premiums are paid with after tax money.
