Health insurance for laid off employees

[D_Michaels]

Our organization is based in New York State. We operate multiple locations where the employees work for ten months and are laid off for two months. The employee pays the employee’s portion of their health insurance coverage for the full year in the ten months they are employed. The employer pays the employer share for the full year. So for the two months when the employees are not working, they are still covered under the company’s health insurance policy. My question is how should we treat the employee health insurance coverage for the two months they are not employed? Should we treat this as income to the employee?

 

[PayrollHRGuy]

If you are talking about only the employer share you treat it just as you do the rest of the year.

And just to be clear, "treat it" for what? My answer was for employee W2 and most payroll purposes.