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Created with Fabric.js 1.4.5 For employers it is important to remember that the wellness incentive amount must be reported on each employees W-2 and to withhold payroll taxes on these amounts. Even when a third party provide theactual benefit employers are considered responsible for withholding requirements. While wellness incentives are a fantastic asset to employees and employers alike many times the tax implications can becomes a surprise for those not expecting to pay the tax on the benefit. While wellness incentives are a fantastic asset to employees and employers alike many times the tax implications can becomes a surprise for those not expecting to pay the tax on the benefit. How to add wellness incentives usingzenpayroll NEW: Under the Affordable Care Act,employers must report the cost of sponsored health coverage to employee on their W-2 for informational purposes. This will not affect the amount reportedon any other box or amount included as income. Wellness incentives are subject to taxation as any other employee benefit. The value of a gym membership for example, is treated as a taxable wage and subject to payroll taxes, such as federal, and social security. Wellness incentives are subject to taxation as any other employee benefit. The value of a gym membership for example, is treated as a taxable wage and subject to payroll taxes, such as federal, and social security. According to an article from the "American Institute for Preventative Medicine," 91 percent of organizations now have some type of health promotion program in place, versus only 78 percent a decade ago. From the main dahsboard select Company Benefits. From the main dahsboard select Company Benefits. 1. Choose a benefit type and customize by adding a name2. Under the Manage Employees tab, select the employee to add a benefit.3. Choose Add Employee Benefit and select a benefit.4. Enter in the amount you'd like deducted each pay period and the amount of each company contribution. More than 81% of businesses with 50or more employeeshave a wellness program in place. WELLNESS BENEFITS:What employers need to know come tax season WELLNESS BENEFITS:What employers need to know come tax season
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