From: Miami, FL
Hi Tax Mama!
I am very frustrated with the Florida Dept. of
Unemployment Compensation. I need to know if
something qualifies as "Gross Wages subject to
State Unemployment Tax as per the Quarterly Form UCT-6.
I need to know if health insurance benefits for a 50%
Shareholder of an S-Corp are considered "Wages" in
Florida for the SUTA.
The health insurance benefits are not part of any
cafeteria, FSA or HSA plan. There is no option to
receive cash in lieu of the benefit.
When I called, they could not find anything in
the statutes. I looked at the statues myself and
could not find anything definitive. I know this
differs from state to state. I also know that
it's considered Wages for Payroll Taxes (not
withholding) and FUTA.
They told me I should write the state for a legal
opinion! I know you can get to the bottom of this.
Thanks,
Susie.
Hi Susie,
What a useless response from the state!
And you really have time to get a decision in
time to file your payroll tax returns?
Besides, yours isn't the only S-corporation
in Florida where the owner gets health insurance.
Or, perhaps it is?
Look, if you treat those expenses as wages,
you'll simply increase the owner's total payroll
for SUTA purposes. So, if the owner has to go
out and collect disability, s/he will get a higher
benefit.
On the other hand, SUTA wages are only the first
$7.000 of wages anyway. So, most likely, the owner
has already been paid more than that.
Does this help with the decision?
Best wishes,
Eva Rosenberg, MBA, EA
