• LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

Taxing and reporting retiree group-term life insurance?

by on
in Office Management,Payroll Management,Small Business Tax

Question: My company provides group-term life insurance with a value of more than $50,000 to some retirees. I know I have to report the uncollected employee FICA taxes on their W-2s in Box 12 with Codes M and N. Do we have to pay the employer share of these taxes? If so, when are they due? Also, how are the amounts reported on Form 941?

Answer: Yes, the employer must pay its share of FICA. The tax code allows employers a great deal of flexibility regarding when these taxes are due. Employers, for example, may treat the amounts due on a pay-period basis, or on a monthly or quarterly basis, provided the taxes are paid by the end of the calendar year. And employers don’t have to use the same time periods for all retirees. You report on the quarterly 941 for the quarter during which you consider the taxes paid.

Like what you've read? ...Republish it and share great business tips!

Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...

We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.

The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.

" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/14159/taxing-and-reporting-retiree-group-term-life-insurance "

Leave a Comment