Hi all -
If an employer makes payments to a retired employee as a health insurance premium reimbursement, is that reported on a W-2 or 1099?
Thanks.
Health Payments for Retired
Feb 26, 2018
4 Replies
It sounds like you are asking about an RHRA (Retiree Health Reimbursement Arrangement). It is a tax-free health benefit that goes unreported to the retiree.
P.S. Retirees do not receive W-2s as they are no longer employees.
I think that is an overgeneralization. I had numerous retiree clients who were receiving some form of deferred compensation payments that were, in fact, properly reportable on W-2. So I'd say this all depends... ;-)
Yes you are correct. My statement was too broad. There are various kinds of special wage payments (deferred comp is just one) that have to be reported on a W-2 to a former employee.
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