Are AFLAC Payments Includable in Compensation

[ERISA1]

A client tells me they had to issue two (2) W-2s to one of their employes this year. The first W-2 reported wages. The second one reported proceeds from an AFLAC policy. I had no idea that AFLAC proceeds must be reported by an Employer. In any event, the employer wants to know whether AFLAC proceeds must be included in allocation compensation.

I've had a super-hard time researching this question on CCH. Does anyone have any insights of this?

Thanks.

[Bill Presson]

A client tells me they had to issue two (2) W-2s to one of their employes this year. The first W-2 reported wages. The second one reported proceeds from an AFLAC policy. I had no idea that AFLAC proceeds must be reported by an Employer. In any event, the employer wants to know whether AFLAC proceeds must be included in allocation compensation.

I've had a super-hard time researching this question on CCH. Does anyone have any insights of this?

Thanks.

If disability insurance is paid for on a pre-tax basis, then the proceeds are taxable. So, they are likely correct on the additional W-2.

Someone else will have to help on the allocation compensation.

[GBurns]

What type of coverage ?

Group or individual policy ?

Who made the payments of proceeds (How was the employer involved?)?