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Old 10-04-2013, 10:31 AM  
96ukssob
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Quote:
Originally Posted by L-Pink View Post
Unless I'm wrong, and I don't think I am, when I was an employer we deducted 100% of our corporate cost for employee health care not a percentage. Post makes no sense.
Quote:
Originally Posted by L-Pink View Post
So the only way the OP's scenario works is if the employer is now deducting more that 100%.
hmm... yeah

health insurance is a FRINGE benefit, you (as the employer) dont pay taxes on this.

the only exceptions under the new healthcare act (that effect businesses with LESS than 50 employees) is to expense those into other taxes, like FICA, whereas you don't have that now.

if you do the math...

you pay an employee $4k/mo. salary W2
as the employer, you have payroll taxes, FICA, etc., which are about 10-12%
adding in health insurance, say at $500
now the cost to have this person work for you is almost $5,000/mo.

from what I gather, and im not going to double check or look into this more because I pay an accountant/HR person to do this, is that health insurance can be *somewhat* expensed out of the payroll taxes bracket. by how much %? probably a little bit but not enough to go from a $500 to an $800/mo plan.
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Last edited by 96ukssob; 10-04-2013 at 10:33 AM..
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