Schedule F Item 6 Reporting

[bzorc]

A question that has been probably been asked many times, but I need help/clarification:

Item 6 of Schedule F asks for total costs of the fringe benefit plan for the year. The instructions (note) then indicates to "enter the amount of the salary reductions and other employer contributions... Nonelective contributions...are the employer's portion of the cost or premium contributed as employer-provided coverage under a cafeteria plan arrangement."

Therefore, for the premium coverage under a cafeteria plan, do the costs include both the employee portion of the coverage (paid on a pre-tax basis), as well as the employer paid portion of the coverage? The rest of the costs (Reimbursement, Dependent care coverage) are not at issue here.

Thanks much!

[Everett Moreland]

Without any authority, my interpretation is that line 6 includes only the amount employees may receive in cash, whether that amount in funded by employee elective contributions or employer-funded contributions. For example, where 95% of the premium is employer funded and employees may not elect to receive any of that 95% in cash, I have advised clients to exclude that 95% from line 6.

[GBurns]

This topic was well covered on this Message Board back in 5-05-99 under the question "Company contribution to self-funded health plan". The last 2 answers are probably the best you will find anywhere, since you have a problem with the instructions on the form. There are also very good explanatory brochures from DOL PWBA on the subject.