cost of bennies supposed to be on W-2s?

[Wisconsin Beth]

My W-2s came a couple of days ago. DH and I eyeballed them. I've been hearing about the bennies being added on. I'm not sure if it's all bennies or just health insurance costs. But was that supposed to take effect with our 2010 W-2s or our 2011 W-2s?

[Deleted]

2011

[Wisconsin Beth]

Thanks.

[frisbee21]

Your health insurance will NOT be taxed. The value will be in a separate box on your W-2 but will NOT be included in your taxable income.

Different if you cover domestic partner or same-sx spouse who is not a tax dependent -- then the value is taxed.

If you have children covered up to age 26 (new eligibility under health care reform) who are not your tax dependents, the value is not taxed due to IRS exception.

[frisbee21]

Oh maybe my reply was hasty -- you didn't specifically say you thought they were taxed

Yes, look for health insurance cost on your 2011 Form W-2. Got pushed back a year.

[AgeOfEnlightenmentSCP]

They're listing them now because they're being tee'd up for taxation. There is simply no other logical explanation.

[Deleted]

However, if you receive life insurance free from your company that is valued at more than $50,000, that is taxed. I guess it's a good benefit, but they pay a whole lot more for my life insurance than I do for my individual policy.

[Deleted]

I think people SHOULD know what their company is paying for their health insurance.. don't you?

[Small Biz Owner]

I sure pay a lot for my employees.

[Deleted]

LOL Is it a sign of my misspent youth that when I read bennies I think little pills?

[Deleted]

Jan 26, 2011 1:20:06 GMT -5 oped said:

I think people SHOULD know what their company is paying for their health insurance.. don't you?

Absolutely, for 2 reasons. First, it's a big number and for many employees the amount they pay is just the tip of the iceberg. Second- when our share of the premiums increases, I'm always curious what happened to total costs. Over time, employers have been passing on a bigger % of the costs to employees- so part of the higher deductions you see in your pay is due to increases in the premiums, but another part of the increase is that you're paying a higher share. My employer increased our contribution 5.5% last year, but co-pays are up, maximum out-of-pocket per person per family has tripled, and the employee now pays 20% of in-network costs instead of 15%. For all I know, they may have had an overall premium increase that's less than 5.5%.

I am not, OTOH, comfortable with having it reported to the government. No good can come of that.

[ohmomto2boys]

I think people SHOULD know what their company is paying for their health insurance.. don't you?

YES YES YES.

And eventually, I'm sure we are going to be taxed on this benefit. I bet there is a committee already being formed in Washington to crunch #'s and see how much can be made by taxing these benefits.

[telephus44]

Jan 26, 2011 1:20:06 GMT -5 oped said:

I think people SHOULD know what their company is paying for their health insurance.. don't you?

I do - I get a once a year statement from my health insurance company letting me know that my insurance costs about $1100/month (even though I pay about $250 a month, employer covers the rest). I thought this applied to everyone, but maybe it's just a state requirement - I'm in MA, pioneer of healthcare coverage :-)

[Deleted]

I was in line with a guy at a rally before health care, waiting to see Specter speak, and he was explaining how his work and his wife's work offered 'exactly the same' health insurance... but her work cost them 50$ less a month... I said, but what did the employer pay.... he got a very blank look on his face... like he had never even considered the fact that the employer was a part of the process... he had no idea what the employer at either might have paid...he thought shopping around for health insurance was a matter choosing the cheapest employer offered plan (and thought everyone should 'shop' around to save themselves money) ... and had no idea of the true costs...

[telephus44]

I found it totally amazing what it costs. Being in MA, I also went to the state website for rate quotes from private insurers - and found that I could get coverage that better meets my needs for $830/month. So if my employer just paid me an extra $1100/month - I could buy my own and pocket the difference. Well, ok, there would be tax implications, so maybe it wouldn't work out in my favor, but I'd sure like the option.

[souldoubt]

Just an FYI that the most recent info from the IRS said that reporting the cost of employer sponsored health care is optional in regards to the 2011 W-2:

www.irs.gov/pub/irs-utl/ssa_irs_reporter_winter.pdf

See page 5.

[Wisconsin Beth]

Thanks souldoubt.