Tax Law (Questions About Taxes)/AFLAC Cancer Policy

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Mike H. wrote at 2014-03-14 23:26:48
just had a client that had Aflac pretax insurance premiums refunded. I claimed them as income on the tax return 2 yrs ago, he got a letter stating he owes both employer and employee social security and medicare tax on that amount on top of the income tax (he had paid). I can understand the employee amount of Social Security and medicare being assessed because those wages were not assessed when they came out for the premiums, however, am trying to find out why he gets the bill for the employer half. The IRS is taxing it as self employment income. Crap!


Tax Law (Questions About Taxes)

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John 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

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none

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Education/Credentials
Degree in Accounting from Falls Business College

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