PRETAXED DISABILITY & W-2

[Guest aikensgroup]

We have an employee that opted to pay her disability premiums with pre-tax dollars. Now I have a letter from Aflac with the amount she received in disability benefits. This is our first employee situation with benefits received with pre-ax dollars. How do I handle this on the employer side? Any info would be greatly appreciated.

Monica

AikensGroup

[Harwood]

Try Publication 15-A "Employer’s Supplemental Tax Guide," pages 12-18

http://www.irs.ustreas.gov/pub/irs-pdf/p15a.pdf

[GBurns]

What does this AFLAC letter tell you to do?

I have never seen one of these letters. What I have seen is a 1099 Misc sent by AFLAC to the employee.

[oriecat]

Some of this will depend upon your agreement with AFLAC. Are they remitting the employer taxes for you. or will you have to do it? Will they send the W-2s or do you have to add to your W-2s?

Why are you allowing them to pre-tax it anyway??

[Guest aikensgroup]

Believe you me this was not my idea. Our Aflac rep that we have had another rep help him and the second rep signed up one of our units about (6 employees) pretax under disability. I think I should send him this paper work to do.

Yes, I did find my answers. I do have file a W-2 with the amount she recieved from Aflac and we the employer must pay the portion of social security, medicare, futa and suta. I am going to run a seperate W-2. This becomes third party sick pay. The Publication 15-A "Employer’s Supplemental Tax Guide has most of the answers but I have to do general journal entries afterwards so that her benefit does not become apart of our wages on our P&L just the taxes. Pay our share of employee taxes on our 941. And shoot the Aflac rep!!!! I am not having fun.

Don't worry I am going to talk to our Aflac rep to see if we can make it apart of our cafeteria plan to not allow disablity pretax.

But until August..... please no one else get sick. There are times being just a bookkeeper would be great but I ware many hats. Health Insurance Administrator and jack of all trades.

Thank you to everyone that responded.

Monica

Aikens Group

<I have never seen one of these letters. What I have seen is a 1099 Misc sent by AFLAC to the employee.> by GBurns

You never want to see one of these either.