Watch for Tax Withholding for ‘Fringe Benefits’

Quarterly Process will Take Place in June 10 Paycheck, if Applicable

HealthBuzzMembers covered by the State Employee Health Benefit have access to numerous great “fringe benefits” as part of the health coverage. This includes things like Healthy Rewards and the fitness club reimbursement. Unlike the health benefit, however, “fringe benefits” are taxable under IRS guidelines. The state processes the withholding for these taxable items once a quarter, and for the most recent quarter, that withholding will happen in the June 10 paycheck.

The most recently completed quarter includes any fringe benefits received between February and April of this year. If you have questions about the amount withheld, you can contact Anthem directly or your HR/payroll office. You can read about this in more detail below:


 

ANTHEM and HEALTH REWARDS

PAYROLL PROCESSING PLANNED FOR THE 6/10/2016 PAY CHECK

Those employees that have been reimbursed directly (paid to employee) or indirectly (paid to facility/organization on behalf of the employee) for fitness club, equipment and education expenses and gift card issuances for February through April 2016 are planned to be processed with the paycheck dated 6/10/2016. This process will report the second quarter of fringe benefits for Anthem Rewards reporting year.

These dollars are considered a fringe benefit and will increase taxable wages and withholding for all Federal, Social Security and Medicare Taxes. Pursuant to IRS guidelines, the value of these taxable benefits received by employees in the period of November 2015 through October 2016 will be included in the employee’s 2016 wages.  This process is being performed to meet Federal fringe benefit reporting requirements. The processing of the rewards will happen on a quarterly basis with the March 18, 2016 being the first reporting, the second reporting period will be June 10, 2016 for the period of February thru April 2016. The dollars associated with this process are listed below as pay code number, long description and check description:

  •         702  HEALTH CLUB REIMBURSEMENT “HLTHCLNF”
  •         703  HEALTH EDUC REIMBURSEMENT  “HLTHEDNF”
  •         704  HEALTH EQUIP REIMBURSEMENT  “HLTHEQNF”
  •         712  HEALTH REWARDS  “HLTHREW”

If anyone should have questions or concerns surrounding the amounts that are represented on your pay checks please reach out directly to Anthem using the customer service phone number listed on the back of your State of New Hampshire health insurance card or you can reach out to your local agency human resources or payroll office.

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