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Old 04-29-2015, 12:00 PM
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C Corp Employee Health Insurance

I am an employee of a C-Corp with no ownership or officer status. My employer is not required under the Affordable Care Act to provide Health Insurance through an employer based plan as he has fewer than 50 employees.(only 10 employees total) My employer offered health insurance payments to all employees in 2014 per the company handbook. The health insurance policy, in my name was paid directly by my employer to the health insurance provider Blue Cross/Blue Shield. This is a qualifying policy as per ACA.
Our tax accountant has put the amount my employer paid for my health insurance policy on my wages for 2014 in line 1 as taxable income. Everything I have found online and from local CPA's has said this is not correct. Can you advise on this?



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Old 04-29-2015, 03:45 PM
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Originally Posted by SFisher View Post
Our tax accountant has put the amount my employer paid for my health insurance policy on my wages for 2014 in line 1 as taxable income. Everything I have found online and from local CPA's has said this is not correct. Can you advise on this?
employer-paid health insurance is treated as tax-free income to employees no matter how premium the plan is. Though the amount is included on your earnings statement, it is still not considered income. The amount listed is for your own personal information.The value of health care coverage provided by your employer is now reported in Box 12 on your W2 with Code DD to identify the amount. The amount reported in the box should include both the portion paid by your employer and you. Under the ACA , most employers must now report the cost of your health care plan ;a few small businesses are still exempt from reporting under the transitional relief offered by IRS. So, the premiums that your employer pays on your behalf, while saving you money, are not considered income. You do not have to report any employer-paid premiums for you, your spouse and dependents on your taxes. This extends to whether the premiums paid were for group insurance or an individual policy or were paid when you were laid off.



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Old 04-29-2015, 06:37 PM
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Is there somewhere this is specifically addressed so I can show the tax accountant?



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Old 04-29-2015, 07:31 PM
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Is there somewhere this is specifically addressed so I can show the tax accountant?
Affordable Care Act Tax Provisions



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