Agent Owner, Gilmore Insurance Services, Marysville, Washington State
The presence of the amount your employer spends on health insurance on your W2 is a fairly new thing and is part of the new health care laws. So far, that is as far as it goes. Note: the next part is my opinion and should be taken as such. I think the reason your employer's payment towards your health insurance is being required on the W2 is because it won't be too long before it becomes taxable income to the employee.
Health insurance (medical, dental, vision) I believe is the only benefit where the employer gets to deduct the cost paid (no taxes paid) and the employee gets the benefit with no tax consequence either. Most things don't work that way.
The debate over taxation of benefits is not new, it has been going on for years. As the government looks for new sources of tax revenue the days of tax breaks for the employer and employee for health benefits may be fading into the past.
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Health insurance (medical, dental, vision) I believe is the only benefit where the employer gets to deduct the cost paid (no taxes paid) and the employee gets the benefit with no tax consequence either. Most things don't work that way.
The debate over taxation of benefits is not new, it has been going on for years. As the government looks for new sources of tax revenue the days of tax breaks for the employer and employee for health benefits may be fading into the past.