Another California Non-Conformity Issue: Medical Insurance for Non-Dependent Adult Children

I felt this important enough to update while relaxing in the Bahamas. (It helps that the sun is gone under a bank of clouds.) Anyway, from Spidell comes word that California is not going to conform to the exclusion of medical insurance premiums for non-dependent adult children. You must impute the cost of such insurance add it to state (California) wages.

However, the FTB has yet to provide guidance on how to do this, and it will likely be at least another week before such guidance is issued. Meanwhile, the deadline for releasing W-2s to employees is in 23 days.

If you are a California employer and offer such insurance for your employees, make sure your payroll processing company is aware of this issue and that a recalculation for your W-2s may be necessary.

I now return to my scheduled vacation.

This entry was posted on Saturday, January 8th, 2011 at 8:43 pm and is filed under California. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

2 Responses to “Another California Non-Conformity Issue: Medical Insurance for Non-Dependent Adult Children”

  1. Robert Mescher says:
    January 10, 2011 at 4:08 pm

    FYI, you have a typo: “non-adult children” should be “non-dependent adult children”.