What About Me?

Corporations have been relieved of their obligations to meet compliance deadlines for the ACA in 2014.  Individuals have not.

Starting next year, you will be taxed on benefit payments your employer pays behalf of your family members.  This means that if your employer provides a health insurance plan that covers your family members, you will be responsible for paying income taxes on the money the company pays that is not specifically for insurance that covers you and you alone.

Here are two questions you need to have answered.

  • Employees: The question you must ask is “How am I going to get the money to pay that additional tax?”
  • Employers:  The question you must ask is “Have I made the proper adjustments to our employees’ withholdings so the taxability of benefit contributions made on behalf of their family members is included in the withholding calculations?”  Remember, you want to properly withhold so that employees are not surprised by a big tax bill they find is due the following April.