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Old 07-10-2010, 07:51 PM
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brianwspencer brianwspencer is offline
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Join Date: Oct 2006
Location: Chicago, IL
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Quote:
Originally Posted by Honu View Post
Go to the bill itself scroll down to section 9002, it clearly states that people will have what their employers pay in insurance for them added to their W2. For me its no big deal because trainers dont provide health insurance for their employees but for my partner it could be a pretty big addition to her payroll.
Maybe I misunderstand it then, to me it seems that bill states that what the employer spends on insurance will be added to the employees taxable earnings, Id love to be wrong about this.
I quoted Sec 9002 above and laid out why I think you are wrong, which I certainly hope you are, because that would be absurd.

The way I read it, those whose employers pay more than $8K/yr for one employee or $23K/yr for employee + family, would be subject to a 40% tax on the premium paid ABOVE that amount.

But how would the government know what the employer paid in premium contributions? They would know because it will be included on the W-2, which is, by my reading, what Sec. 9002 says. I don't interpret that in any way to say that the employer contributions will be rolled into gross income (thereby making them taxable income for EVERYONE), but rather that they will be included on the W-2 as a piece of information relevant for tax purposes.

See what I'm saying with that? I hope I'm right, or I'll be right there with you blasting this....but I think I'm right on this one.
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