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  #1  
Old 04-07-2005, 12:58 PM
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Insurance Premiums

What is the name of your state? Texas

I understand if an employer pays the cost of an accident or health insurance plan for its employees and their spouse and dependents, the payments are not considered wages to the employee and are therefore, not subject to FICA, Medicare, FUTA, or federal income tax withholding.

If the employer only pays part of the premium and withholds the remainder of the premium from the employee's pay check, is the employee's portion subject to the above taxes?
  #2  
Old 04-07-2005, 02:56 PM
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That depends on whether the withholding is before taxes or after taxes. The employer has the option to do either.

Snipes
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  #3  
Old 04-08-2005, 09:40 PM
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So next time I run payroll for the company, I can just opt to withhold on the wages less the insurance premium rather than on the gross wages?
  #4  
Old 04-08-2005, 10:17 PM
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Yes, provided the company wants you to do that.
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  #5  
Old 04-11-2005, 08:59 AM
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Where can I look for IRS literature that would support this so I can show it to my employer when I suggest we change to the pre-taxed method? I've searched their web-site but haven't come up with anything.
  #6  
Old 04-11-2005, 09:59 AM
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Quote:
Originally Posted by rjmunoz
Where can I look for IRS literature that would support this so I can show it to my employer when I suggest we change to the pre-taxed method? I've searched their web-site but haven't come up with anything.
Here you go:

[url]http://www.irs.gov/publications/p15b/ar02.html#d0e618[/url]
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