Friday, December 17, 2010
As a W-2 short-term disability payments displayed
In the short term offer disability payments income during a period which the staff may not because of disease, to work injury or pregnancy. Employer contracts with third insurance companies, these benefits for your employees in exchange for a monthly premium to offer. Checks directly from the insurance company go disabled workers, employers and workers can confuse imposing the tax benefits. In particular, employers need to know if yes or no income on Form W-2 employee must be reported and how it should be, listed.Difficulty: as premiums ModerateInstructions1Determine payable. This determines if the benefits are taxable. If the employer who pays premium and the premium amount reported in gross income of the employee, short term disability benefits are taxable. If the employee pays premium income after taxes, the benefits are not taxable. 2Set if optional contribution system you want. Employers offer two options for staff employees a choice between taxed in non-taxable persons disability allowance or investment are subject to tax on premiums paid taxes as if receive. If a worker taxed one now rather than later, the bonus on your income tax and then reluctance to pay insurance will be added. Paid by the employee of each employee paycheck. 3Instruct select the net result of the tax on premiums a payment plan. If employers select workers between premiums before or after tax, Manager must explain that elections plan are irrevocable until next year. Once an employee an Opti chosen hatein contribution, IRS regulations prohibit the change you this option to dinext plan e year. 4Report income into the appropriate section of the form W-2. If rewards money before taxes are paid the most hand often short terms situation disability, then taxpayer benefits in gross income of the employee should be included with the wages, tips, and other allowances. If paid premiums on the result after taxes, payments are not taxable and must be reported in box 12 with j code.