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OWING the taxes for the health plan payments

 

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Subject Author Date
OWING the taxes for the health plan payments Molly Brown 04-16-2007
Posted by Molly Brown on April 16, 2007, 12:28 am
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Taxes are calculated after the amount for the health plan is
deducted from a pay check because what is paid to the health
plan is not taxable. But at the end of the year the total
for the health plan payments is included in the gross
(wages, tips, other compensation) along with the taxes that
were calculated and deducted from every pay check AFTER the
health insurance payments. Doesn't this make it seem like
taxes were NOT paid on the payments for the health plan so
you end up OWING the taxes for the health plan payments,
same as any other taxable income? Can somebody PLEASE
explain this to me? Thank you.

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Posted by Phil Marti on April 16, 2007, 5:03 pm
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> Taxes are calculated after the amount for the health plan is
> deducted from a pay check because what is paid to the health
> plan is not taxable. But at the end of the year the total
> for the health plan payments is included in the gross
> (wages, tips, other compensation) along with the taxes that
> were calculated and deducted from every pay check AFTER the
> health insurance payments.

Pre-tax deductions should not be included in the Box 1
amount on your W-2. If they are, contact payroll.

--
Phil Marti
Clarksburg, MD

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

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