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The simple answer is yes, but it is more complicated than that.
There is no current law that requires employers to provide health insurance coverage for their employees, so the employer could drop coverage at any time. (When the new Affordable Care Act becomes fully functional, everybody will have to buy insurance and employers who don't provide it will be fined....but many will still drop their employees and pay the fine because the fine will still be cheaper than paying high rates for coverage).
But for now.....employers can drop coverage, but must still provide coverage for the month in which they drop the coverage if they try to cancel mid-month. This is because the premiums would have already been paid for that month and you should still get that coverage until that month's premiums have been used up.
But the next month, they don't have to pay the premiums and your coverage would end.
That being said, you might still be eligible to 'continue' that coverage under the group plan so long as you are willing to pay the full premium, which you might not be able to afford. You'll have to check with the insurer about the availability of 'conversion policies' that allow you to convert from a group plan to a non-group plan.
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Will the cost of employer-paid health insurance will be included as income on W-2 tax forms in 2011?
Not as taxable income. But yes the amount will be included on the W-2 form if the employer is receiving the tax credit for the amount of the premiums. This information will be to inform the employee of the amount of the premiums that the employer is paying on the employees medical insurance benefit for the year 2010.
Can an employer pay cash to an employee instead of paying his health insurance premiums as is done for other employees?
It is possible. Some companies allow this if the employee shows that they are covered by another medical insurance policy. The company has a vested interest in keeping healthy employees. Under the new Health Care Reform laws, this may no longer be possible.
Will insurance be INCOME on your W2's?
NO. The amounts that your employer is paying for your medical insurance premiums in the year 2010 will NOT be included in the box 1 gross wages of your taxable income but the amount will be reported to you and to the IRS on your W-2 form probably in box 14 for your information because your employer will getting a tax credit on the company income tax return for helping the employees pay for the medical insurance premium's.
Are health insurance premiums a business expense?
If you are paying them for your employees as part of their compensation package, yes, it is a business expense. If it is for yourself, no, it is not a business expense, but it is usually tax deductable under medical costs.
What is meant by the abbreviation HRA?
The abbreviation HRA stands for Health Reimbursement Arrangement. Which is usually a benifit offered to employees by their employer. It helps the employee with paying for medical coverage.
Can your employer cancel your health insurance when you are on short term or long term disability because you did not make a payment on your insurance like is normally done through your paycheck?
Your employer's obligation to pay premiums normally stops when your paycheck does, that is, when your medical and personal leave is exhausted, and there is nothing left to deduct the premiums with. When that happens, the insurance company, not your employer, cancels your health insurance for lack of premiums. There are many ways to avoid this tragedy, including donation of leave by co-workers, if permitted, to keep the paychecks coming, or employer paying premiums for you until you are able to return to work. Good luck. JJ
How much does an employer pay the government for a 1099 on wages paid a 1099 employee?
None. The employer does not have to pay the half of the Social Security Tax or Medicare Tax that they would if you were an employee. The normally also get out of paying Unemployment Taxes, Retirement Benefits, Medical Insurance, and General Liability and Worker's Compensation Insurance Premiums. The IRS is really cracking down on employers who try to call their employees subcontractors.
Can a employer deny a full time employee health insurance?
An employer can choose not to pay for health insurance for any employees but can not discriminate by paying for some employees in a qualified class and not others.
Can employer short wages to avoid paying unemployment?
An employer's payroll is what the state determines how much his premiums will be (along with experience factors, etc.), for his payroll taxes. If the state finds the employer is in non-compliance with their requirements they will come down hard on the employer.
Can a company stop paying health insurance premiums causing the insurance to be cancelled without notifying employees although employees are still paying for insurance?
No. I don't have the citation off hand, though. If nothing else you'd probably qualify for HIPAA.
Got hurt at work how you get money for your bills?
Workmen's Comp insurance. Your employer should have been paying the premiums. If you are not covered by Workmen's Comp, you can always sue the employer if you were not violating any safety rules when you were injured.
Is an employer required to continue paying health insurance benefits if an employee is short term disabled in New York?
No. They are required to continue to offer coverage, but they are not required to continue paying for it. You would be responsible for the full premiums.
