Jeeplady66
Member
What is the name of your state? MN
I would like to enroll my domestic partner on my group health insurance, which would switch my current coverage to Employee/Children to Family. However, our handbook states that the portion of the employer-paid premium is considered taxable (or imputed) income and FICA and income taxes will be calculated and withheld from my paycheck.
When I called my HR dept directly, the customer service person didn't mention any tax implications (it was 1 paragraph, buried in the handbook), just kept stating the withholding will be X dollars per pay period (the diff between Emp/Ch and Family cov). Which is true, in a sense. I heard, from other employees, that the tax implications can have a huge affect on your take-home pay, up to $100 per paycheck. No one could tell me how much will be added to my gross pay (what the amount of the employer paid prem will be!)
My question is this: Is the imputed income taxed at a higher rate then actual wages? Would this be added to my W-2 as income or will I get 1099'd at the end of the year? Why would my employer complicate payroll withholdings by doing this?
Thanks for any thoughts
I would like to enroll my domestic partner on my group health insurance, which would switch my current coverage to Employee/Children to Family. However, our handbook states that the portion of the employer-paid premium is considered taxable (or imputed) income and FICA and income taxes will be calculated and withheld from my paycheck.
When I called my HR dept directly, the customer service person didn't mention any tax implications (it was 1 paragraph, buried in the handbook), just kept stating the withholding will be X dollars per pay period (the diff between Emp/Ch and Family cov). Which is true, in a sense. I heard, from other employees, that the tax implications can have a huge affect on your take-home pay, up to $100 per paycheck. No one could tell me how much will be added to my gross pay (what the amount of the employer paid prem will be!)
My question is this: Is the imputed income taxed at a higher rate then actual wages? Would this be added to my W-2 as income or will I get 1099'd at the end of the year? Why would my employer complicate payroll withholdings by doing this?
Thanks for any thoughts