taxable deduction?

[NS86]

What is the name of your state (only U.S. law)? Illinois

Our health plan is set up so the employer pays the premium for the employee only. If an employee want’s to have their wife/dependents on the plan they pay through a deduction to their check. Would this deduction be a pre-tax or post-tax deduction?

 

[LdiJ]

What is the name of your state (only U.S. law)? Illinois

Our health plan is set up so the employer pays the premium for the employee only. If an employee want’s to have their wife/dependents on the plan they pay through a deduction to their check. Would this deduction be a pre-tax or post-tax deduction?

That is kind of up to the employer, however its to both the employer's and employee's benefit for it to be pre-tax, so its almost always pre-tax.

 

[NS86]

Would this deduction show up anywere on the W2 or will it not be included as wages?

 

[LdiJ]

Would this deduction show up anywere on the W2 or will it not be included as wages?

It would not be included in wages. The total premium paid (both employer and employee part) shows up in box 12, code DD.

 

[NS86]

It would not be included in wages. The total premium paid (both employer and employee part) shows up in box 12, code DD.

This is still optinal for Employers who file less than 250 W2's correct?

 

[LdiJ]

This is still optinal for Employers who file less than 250 W2's correct?

No, its no longer optional.

 

[NS86]

Thank you for the help.