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My company has been researching the impacts of the health care bill on the business and our employees. I was under the mistaken impression that only the so-called "Cadillac" plans were going to be subject to a punitive tax. WRONG. If your employer provides health insurance, starting in 2011 that insurance will be reported on your W2s as income. Many individual insurance premiums run $400 per month or nearly $5000 per year. Families are considerably higher, usually double. So for a family with a $10,000 annual premium with a middle income wage that puts their top income in the 35% bracket, expect to see a $3500 increase in your yearly income tax.
No new taxes on anyone making less than $250K my a$$.
Other details are as bad or worse. For those with health savings accounts, you can no longer use them to purchase over the counter medications, prescriptions only. Does this look like one more gimmie to the pharma industry? Also, if you have a HSA and have to make a non health related withdraw, you are penalized 20%, on top of the 35% marginal tax rate.
Your company probably gives you a 1-2 page summary of your health benefits, right? If they happen to miss giving them out they are fined $1000 PER EMPLOYEE, starting in 2012.
I need some time to read through the rest of the document we got, but it looks worse than we all feared.
According to our benefits dept, that is not the case. I work for a huge company (Fortune 100) that has researched this in depth and provided us with information this week.
Our insurance will not be reported as income on W2, in fact, the cost will continue to be deducted PRE-TAX.
You might want to hire a professional to help you with this...
I read about the HSA accounts. I also figured that anyone who had an employer kick in some part of the insurance premiums would fall into a "cadillac" plan..the details were so foggy when they announced that I just assumed the worst. And it all got overshadowed with the unions balking at being taxed. Well, at least the unions got their "pork" by getting exempt for a number of years.
I plan to be retired when all this crap kicks in..hopefully underemployed where I can at least keep the money I earn.
Information Reporting
The act requires employers to disclose on each employee’s annual Form W-2 the value of the employee’s health insurance coverage sponsored by the employer, effective for tax years beginning after Dec. 31, 2010.
The act requires businesses to file an information return (e.g., a Form 1099) for all payments aggregating $600 or more in a calendar year to a single payee, including corporations (other than a payee that is a tax-exempt corporation). The provision is effective for payments made after Dec. 31, 2011.
According to our benefits dept, that is not the case. I work for a huge company (Fortune 100) that has researched this in depth and provided us with information this week.
Our insurance will not be reported as income on W2, in fact, the cost will continue to be deducted PRE-TAX.
You might want to hire a professional to help you with this...
From what I found..it looks like the value must be reported on the W-2..I guess similar to how 401K deferrals are reported but not taxed.
According to our benefits dept, that is not the case. I work for a huge company (Fortune 100) that has researched this in depth and provided us with information this week.
Our insurance will not be reported as income on W2, in fact, the cost will continue to be deducted PRE-TAX.
You might want to hire a professional to help you with this...
I have the document in front of me that shows where it will be included as W2 income. I'll look for an on-line version to link to. If you have something you can link to from a reputable source (is there one anymore?), I'd like to see it. I hope I'm wrong.
Quote:
From what I found..it looks like the value must be reported on the W-2..I guess similar to how 401K deferrals are reported but not taxes.
Now this might be true, that is is reported, but not as taxable income. It's really not that clear from what I'm seeing. My doc "All employers must include on the W2s the aggregate cost of employer-sponsered health benefits." It's possible it is reported but not taxed.
The other interesting one-"All employers would be required to enroll employees in a new national public long term care program"
My company has been researching the impacts of the health care bill on the business and our employees. I was under the mistaken impression that only the so-called "Cadillac" plans were going to be subject to a punitive tax. WRONG. If your employer provides health insurance, starting in 2011 that insurance will be reported on your W2s as income. Many individual insurance premiums run $400 per month or nearly $5000 per year. Families are considerably higher, usually double. So for a family with a $10,000 annual premium with a middle income wage that puts their top income in the 35% bracket, expect to see a $3500 increase in your yearly income tax.
No new taxes on anyone making less than $250K my a$$.
Other details are as bad or worse. For those with health savings accounts, you can no longer use them to purchase over the counter medications, prescriptions only. Does this look like one more gimmie to the pharma industry? Also, if you have a HSA and have to make a non health related withdraw, you are penalized 20%, on top of the 35% marginal tax rate.
Your company probably gives you a 1-2 page summary of your health benefits, right? If they happen to miss giving them out they are fined $1000 PER EMPLOYEE, starting in 2012.
I need some time to read through the rest of the document we got, but it looks worse than we all feared.
It is bad. But when we try to point out such things we are called liars by the progressives. This has nothing to do with healthcare and everything to do with control and over-taxation.
Information Reporting
The act requires employers to disclose on each employee’s annual Form W-2 the value of the employee’s health insurance coverage sponsored by the employer, effective for tax years beginning after Dec. 31, 2010.
The act requires businesses to file an information return (e.g., a Form 1099) for all payments aggregating $600 or more in a calendar year to a single payee, including corporations (other than a payee that is a tax-exempt corporation). The provision is effective for payments made after Dec. 31, 2011.
OK, I'm still confused. A 1099 is typically a way of reporting business income, which in turn is taxed. I wasn't aware that there was such a thing as an "information only" 1099.
I have the document in front of me that shows where it will be included as W2 income. I'll look for an on-line version to link to. If you have something you can link to from a reputable source (is there one anymore?), I'd like to see it. I hope I'm wrong.
Now this might be true, that is is reported, but not as taxable income. It's really not that clear from what I'm seeing. My doc "All employers must include on the W2s the aggregate cost of employer-sponsered health benefits." It's possible it is reported but not taxed.
The other interesting one-"All employers would be required to enroll employees in a new national public long term care program"
According to our benefits dept, it is reported but not taxed. It's purpose is to show you how much your employer pays for your health insurance.
The other interesting one - employers are NOT required to enroll all employees in the Long Term Care program - they must offer the option to their employees.
It is bad. But when we try to point out such things we are called liars by the progressives. This has nothing to do with healthcare and everything to do with control and over-taxation.
Not calling anyone a liar, OP is simply mistaken. Please do your research. The dollar amount is reported on the W2 for informational purposes only. You will not be taxed on that dollar amount.
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