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1099 reporting - health insurance premiums
Benefits & Compensation
1099 reporting - health insurance premiums
Exchange ideas about health plans, retirement, work/life benefits, and employee assistance.
We have a consultant (with his own roster of clients) that we allow to participate in the company's group health HRA. For 1099 reporting, does the company-paid portion of the consultant's premium get
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Forums » Topic Forums » Benefits & Compensation » 1099 reporting - health insurance premiums
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1099 reporting - health insurance premiums
posted at 1/28/2011 4:36 AM EST
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Posts: 7
First: 7/10/2007 Last: 2/1/2011 |
We have a consultant (with his own roster of clients) that we allow to participate in the company's group health HRA. For 1099 reporting, does the company-paid portion of the consultant's premium get reported in box #7 of the 1099? Obviously it would not be reported on a W-2...this year. |
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1099 reporting - health insurance premiums
posted at 1/28/2011 6:52 AM EST
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Posts: 1771
First: 10/24/2002 Last: 9/14/2011 |
You are treading on dangerous ground by allowing an IC to participate in your employee benefits plan. You risk having the IRS fine your company for IC/employee misclassification, and/or your benefits carrier cancel your contract for placing a non-employee on the plan. |
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1099 reporting - health insurance premiums
posted at 1/31/2011 4:01 AM EST
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Posts: 2146
First: 2/15/2006 Last: 9/14/2011 |
Just in case you didn't get the direness of the last two postings, your situation raises way too many flags -- and even those outside of your health HRA.
You are treading very thin ice in your situation in multiple ways. (1) plan eligibility of a non-employee (2) losing independent contractor status due to coverage using employee benefits (3) pretax eligibility for EVERYONE in the plan if it is found you are out of compliance with either the Section 125 document or your plan document Those are just the first three off the top of my head. You really need to seek competent legal counsel on how to deal with the quagmire you are already in. |
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1099 reporting - health insurance premiums
posted at 2/1/2011 6:42 AM EST
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Posts: 1047
First: 4/11/2002 Last: 9/14/2011 |
Believe it or not, some insurance carriers (think regional HMO's) do allow independent contractors to participate in employer-sponsored health plans. Generally speaking, however, yes, the independent contractor probably shouldn't be on the health plan. Without knowing what the SPD says, however, we would be speculating.
As for your tax question, I suggest waiting for further guidance on the subject. It wasn't a requirement for 2010 and more will come out on this topic as we approach the end of 2011. That is, if health care reform is still alive by then. |
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1099 reporting - health insurance premiums
posted at 2/1/2011 7:52 AM EST
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Posts: 1771
First: 10/24/2002 Last: 9/14/2011 |
mroberts7 also said "Generally speaking, however, yes, the independent contractor probably shouldn't be on the health plan." and I don't think he/she was referring just to the SPD. |
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1099 reporting - health insurance premiums
posted at 2/2/2011 7:31 AM EST
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Posts: 2146
First: 2/15/2006 Last: 9/14/2011 |
here's one short article from TP :
http://www.towerswatson.com/united-states/newsletters/insider/3649 But it is from the point of view of W-2 information, not 1099 information I suspect that if the IRS does start REQUIRING this information on W-2s, then it would also be required for anyone else that is covered under an employer plan. But that is just my suspiscion |
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