Officers health insurance

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Officers health insurance

1. Officers health insurance

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Silver Most Valuable Member

Gary Geisenheimer
Posted 01-03-2015 03:50 PM
Is the officers health insurance on the w2 subject to fica and medicare tax?

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Gary Geisenheimer
CPA
Gary Geisenheimer
Woodbury NY
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2. RE: Officers health insurance

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Ronald Tockman
Posted 01-04-2015 06:51 AM
Gary, I assume you are referring to a S-Corp officer. The health insurance included on the W-2 is not subject to any withholding, FICA or medicare. Additionally, the amount is deductible on page one of the 1040.

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Ronald Tockman
RONALD C. TOCKMAN, CPA
Stoughton MA
781-344-8778
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3. RE: Officers health insurance

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Platinum Most Valuable Member

Stephen Mankowski
Posted 01-04-2015 07:40 AM
Right on the money, Ronn. The amount added to the W2 is then included as self-employed health insurance on line 29 at the bottom of the 1040. End result is no tax impact

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Stephen Mankowski BS
EP CAINE & ASSOCIATES, CPA LLC
Bryn Mawr PA
215-674-5652
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4. RE: Officers health insurance

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Abby Alhante
Posted 01-04-2015 09:27 AM
I agree with Ron. This question was specifically covered after research by Carol Markman in a round table a few years back.

She instructed us NOT to include this fringe benefit as taxable for social security.purposes.

An additional twist to this is it's treatment for purposes of NYC alternative tax. We believe that the amount is properly includable as wages in this computation . We also believe that wages reduced by a 401K deferral are also what is used for this tax computation.

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Abby Alhante
KURCIAS & ALHANTE, CPAs LLC
Woodbury NY
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5. RE: Officers health insurance

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David J. Rothfeld
Posted 01-04-2015 11:38 AM
Gary:
Feel free to go to IRS's PUB 15, page 16, specifically the paragraph headed with the title " Health insurance plans
You include the health insurance on both box one of the W-2 as well as on line one of the 941, 940 etc. you show it as an exclusion on the 940 and do not include in either taxable FICA or Medicare wages.
Have a happy and healthy New Year and I hope we see you at our January 15 chapter meeting.
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David Rothfeld
DAVID J. ROTHFELD, CPA
Hicksville NY
516-433-2129
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