... and you won't even have to pay taxes on it!
We like to reward our members who read our blog. One lucky winner will receive a $50 Target gift card. Who can't use a little extra dough these days?
TO ENTER
To enter the giveaway, just answer the following question in the Comments section of this post:
Are wages that are not paid in cash, such as fringe benefits, subject to Additional Medicare Tax?
Employee wellness programs, tuition assistance, flexible medical or child-care spending accounts, etc. How many of your clients will be affected by this tax? Do you think your clients will cut back on fringe benefit programs? Tell us about it!
THE RULES
One entry per person.
The contest closes on Thursday, January 17th at midnight.
The winner will be announced on Friday.
The winner will be randomly selected using Random.org.
Be sure to include your email address so we can contact you.
GOOD LUCK!
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I think companies will cut back on fringe benefit programs with taxes going up.
ReplyDeleteYes, wages that are not paid in cash, such as noncash fringe benefits, are subject to the additional medicare tax, if the noncash fringe benefits combined with other wages exceed an individual’s applicable threshold. Unlike the regular medicare tax, the additional medicare tax is not subject to the employer match. That being said, employers may not cut back on noncash fringe benefits for these reasons. However, since employers are always looking for ways to 'cut back', especially in these economic times, they may cut back on these benefits to increase their profits.
ReplyDeleteWe have at least a handful of clients that will be affected by this and I do believe our clients will consider cutting back on some of them once they see the impact.
ReplyDeleteYes, wages that are not paid in cash, such as fringe benefits, are subject to Additional Medicare Tax. I'm not in public accounting anymore, so I don't have clients this will impact. However, my personal opinion is that this will not cause employers to cut back on fringe benefits since this is a tax paid by the employee, not the employer. It may make employees think twice about wanting the fringe benefits, because they will have to pay the tax. But since it is only on wages in excess of $200k, that is a problem I would like to have.
ReplyDeleteYes. Additional Medicare Tax, effective for wages paid after December 31, 2012, applies to wages and compensation and to self-employment income above a threshold amounts.
ReplyDeleteAll wages that are currently subject to Medicare Tax are subject to Additional Medicare Tax if they are paid in excess of the applicable threshold for an individual’s filing status. I believe all companies will cut back on fringe benefit programs in the future.
ReplyDeletenikki5867@aol.com
yes jciekot@cfrcpa.com
ReplyDeleteYes, wages not paid in cash are subject to additional medicare tax if they exceed the threshold when combined with other wages. jfobbs@knights.ucf.edu
ReplyDelete