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The Library => The SGA => Topic started by: Snaggletiger on August 13, 2010, 02:43:55 PM
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Just received the email below. I have 5 employees in my little mom and pop firm and contribute to their health care plan. This just boggles the mind.
Subject: 2011 W-2
2011 W-2 Tax Forms and Obamacare
If this doesen't get to you, then check your pulse. You may be a flatline...
Should you want to verify this, go to http://www.thomas.gov/, (http://www.thomas.gov/,) enter "HR 3590"
in the search box and look for "CRS Summaries." This is what you'll find.
Title IX Revenue Provisions—Subtitle A: Revenue Offset
"(Sec. 9002) Requires employers to include in the W-2 form of each employee
the aggregate cost of applicable employer-sponsored group health coverage
that is excludable from the employee's gross income (excluding the value of
contributions to flexible spending arrangements)."
Starting in 2011—next year—the W-2 tax form sent by your employer will be increased to show the value of whatever health insurance you are provided. It doesn't matter if you're retired; your gross income WILL go up by the amount of insurance your employer paid for. So you’ll be required to pay taxes on a larger sum of money than you actually received. Take the tax form you just finished for 2009 and see what $15,000.00 or $20,000.00 additional gross income does to your tax debt. That's what you'll pay next year. For many it puts you into a much higher bracket. This is how the government is going to buy insurance for fifteen (15) percent that don't have insurance and it's only part of the tax increases, but it's not really a "tax increase" as such, it is a redefinition of your taxable income.
Also, go to Kiplinger's and read about the thirteen (13) tax changes for 2010 that could affect you.
Why am I sending you this? The same reason I hope you forward this to every single person in your address book. People have the right to know the truth because an election is coming in November. So vote intelligently, based on your values. But also adjust your tax withholding, or increase your savings, so that you aren't surprised and put in a jam when your federal income taxes are due on April 15, 2012.
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Excellent info Snaggle. Thanks.
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Just received the email below. I have 5 employees in my little mom and pop firm and contribute to their health care plan. This just boggles the mind.
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Snaggletiger, be careful of this notice. My understanding is that employers will definitely have to disclose the value of employer contributions to health care programs on an employees' W2 form beginning January of next year but it is disclosed for informational purposes only and not added to nor provided to be included as taxable income.
You might want to check with a tax adviser to make sure as this Obamacare shit is confusing as hell for everybody.
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Snaggletiger, be careful of this notice. My understanding is that employers will definitely have to disclose the value of employer contributions to health care programs on an employees' W2 form beginning January of next year but it is disclosed for informational purposes only and not added to nor provided to be included as taxable income.
You might want to check with a tax adviser to make sure as this Obamacare shit is confusing as hell for everybody.
Step 1. Identify the amount we can tax.
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Step 1. Identify the amount we can tax.
No doubt that's where it could lead (and probably will with the FedGov need for more Babylonian revenue streams).
I was simply stating what the 'is' is, not the 'could be'.