Hi Brittany. Sorry for the delay in response. I didn’t see your question.

This information came from our compliance department:

I think the question is whether an employee can make pre-tax contributions towards the cost of benefits while on an FMLA leave of absence. Eligible employees can participate in the POP (which is to say, they can make pre-tax contributions) during periods of paid leave.

If the leave is unpaid, of course there is no mechanism for pre-tax contributions. In that case, the contributions would need to be made on a post-tax basis (e.g., via check) according to the employer’s leave policy.

Remember that an employer is required to continue group health insurance during periods of FMLA leave on the same terms and conditions (e.g., at the same contribution levels) as coverage would have been provided if the employee had not taken leave.

As to W-2 cost of coverage reporting, the figure reported in Box 12 of the Form W-2 includes both the portion paid by the employer and the portion paid by the employee. Whether employee contributions are made pre-tax or post-tax doesn’t affect the figure reported in Box 12.

Hope this helps!

Unfortunately there is no update on this issue yet.

Agreed. The insurance companies had to make their own decisions on how to tax the benefits because the IRS has still not clarified. Hopefully we’ll hear soon.

Hi Elizabeth. There are definitely companies that can help with a host of HR-related tasks. If you’d like some details, please call me at (866) 724-0008.