Tuesday, November 23, 2010

How to use pre-tax employee contributions for health insurance premium?

I am trying to learn how to allow an employee to purchase her health insurance with pre-tax dollars. How is that reported to the IRS?
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You need a written section 125 premium only plan document. After you have this set up the payroll for pretax earnings and deduction. This is should on the W-2 form in box 14.
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