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I help businesses enhance their culture by improving cost, communication & compliance of employee benefit programs

𝗛𝘂𝗺𝗮𝗻 𝗥𝗲𝘀𝗼𝘂𝗿𝗰𝗲𝘀 & 𝗣𝗮𝘆𝗿𝗼𝗹𝗹 𝗙𝗼𝗹𝗸𝘀 📢 Do you offer employer paid life insurance over $50,000 to your employees? Did you know that a benefit exceeding $50,000 is subject to taxation? 𝗛𝗲𝗿𝗲’𝘀 𝘄𝗵𝗮𝘁 𝘆𝗼𝘂 𝗻𝗲𝗲𝗱 𝘁𝗼 𝗸𝗻𝗼𝘄: • Employer paid coverage over $50,000 is considered taxable income  • This amount should be included in an employee’s W-2 as an imputed income. • The IRS uses a specific formula referred to as a “Premium Table” to determine the taxable value, which varies based on the employee's age. Check out The Benefit Breakdown’s newest video to ensure you are taxing employee benefits properly! Link to the full video in the comments. 🎥 # EmployeeBenefits #LifeInsurance #Taxation

Brandon Huerta, CPA

I help businesses enhance their culture by improving cost, communication & compliance of employee benefit programs

3mo

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