ddsatern
12-22-2014, 07:06 PM
You would track those payments outside of PayWindow and then at the end of the year, use the Add-On software W2Express which allows you to edit the W2 Forms as well as other things like print them on plain paper and submit them on-line to the SSA.
See this page in the help file:
http://zpay.com/pw-online-help/1099ExpressW2Express.htm
We just received notice from our accountant that employer cannot pay premiums directly or reimburse employee for individual health plans.
"Earlier this year we learned that due to the Affordable Care Act an employer could not reimburse an employee for health insurance premiums paid by the employee for an individual policy. This included paying the policy for the employee directly.
It was believed at that time the employer could reimburse the employee for this scenario IF it was reported as taxable to the employee.
We have learned in the last week with a clarification on this rule that was distributed by the Department of Labor and the Internal Revenue Service that this is not the case.
Actually, how this law is to be interpreted is that the employer CANNOT reimburse an employee whether it is pre-tax or post-tax for an individual health plan.
What does this mean to you:
If you have employees (including yourself if you are an S-Corporation owner or Corporation owner) and:
1. You do not a have a group plan and
2. You reimburse or pay for your employees premiums,
You must STOP IMMEDIATELY and adjust these premiums to gross wages. This will cause a catch-up of payroll taxes for the employee and employer. Failure to follow these rules can result in a PENALTY of $100/day per employee if caught. This means a $36,500 per employee per year penalty that is non-deductible on your return."
How do I adjust the premiums we have paid to their gross wages and catch-up payroll taxes?
See this page in the help file:
http://zpay.com/pw-online-help/1099ExpressW2Express.htm
We just received notice from our accountant that employer cannot pay premiums directly or reimburse employee for individual health plans.
"Earlier this year we learned that due to the Affordable Care Act an employer could not reimburse an employee for health insurance premiums paid by the employee for an individual policy. This included paying the policy for the employee directly.
It was believed at that time the employer could reimburse the employee for this scenario IF it was reported as taxable to the employee.
We have learned in the last week with a clarification on this rule that was distributed by the Department of Labor and the Internal Revenue Service that this is not the case.
Actually, how this law is to be interpreted is that the employer CANNOT reimburse an employee whether it is pre-tax or post-tax for an individual health plan.
What does this mean to you:
If you have employees (including yourself if you are an S-Corporation owner or Corporation owner) and:
1. You do not a have a group plan and
2. You reimburse or pay for your employees premiums,
You must STOP IMMEDIATELY and adjust these premiums to gross wages. This will cause a catch-up of payroll taxes for the employee and employer. Failure to follow these rules can result in a PENALTY of $100/day per employee if caught. This means a $36,500 per employee per year penalty that is non-deductible on your return."
How do I adjust the premiums we have paid to their gross wages and catch-up payroll taxes?