USA Employee payment of taxes on LTD premiums


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When the employer pays the premiums for LTD, but the employee pays the taxes on the premiums (so to not have to pay the taxes when/if they ever receive the benefit), the only way I have seen to process this in payroll is to add the premium into the employee's gross wages, tax the premiums, then deduct out the premium after taxing it.

Question - does this temporary uplift to the employee's income need to be reported on the employee's W-2 in any of the boxes? Their income has been increased and the taxes paid accordingly, but they didn't really receive that extra income.
 
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Joined
Jul 10, 2019
Messages
3
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0
Country
United States
This is regarding taxing on the BENEFITS. I'm not asking about this. I'm referring to the premiums for LTD. In our situation, the employee is not paying any of the PREMIUMS. The premium is being added to their income, so to tax it, then it's deducted back out post-tax. The reason for this is because if an employee pays the tax on the premiums, they do not owe tax on the benefit when/if they ever need it. However, our company is still covering the cost of the premium itself, the employee is paying taxes on the cost of the premium.

My question was on whether or not this temporary 'uplift' of the employee's income gets noted in any of the boxes on the W-2.
 

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