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How well I remember these days with my three boys......

I heard Karen Hawkins speak at 3 seminars in Chicago. "If you know, or should have known, you will be held responsible for submitting inaccurate information to the IRS." She acts like she has no one to answer to and can do pretty much anything she wants. Documentation for this kind of situation, if ever audited, falls to the taxpayer AND the preparer. She is a very frightful person that no one seems to want to rein in.

"Problem Exists Between Keyboard and Chair

MrRichMan: The employer does NOT know what he is doing, and ADP doesn't either. And ADP doesn't care whether the W-2's are right or not, and they are "off the hook" as far as they are concerned. Read ADP's/Paychex/any other payroll prep firm contract, it is ALL on the employers..." The paystub is wrong. *IF* the employer has all the Sec 105 stuff in order, and the employee's plan is fully ACA compliant, *maybe* he is in good shape. Not very likely. Also, your employer has to file form 720 and pay the $2 an employee PORCARI tax since the sec 105 plan is now considered an employer plan and subject to the tax. Rich

Even if ADP wasn't administering the plan, it's possible that a smart customer service rep would catch this and code it to be reported as taxable wages, BUT I've also had dealings with the less-than-smart reps that will report the compensation which ever way the client tells them. mrichman333, it doesn't make any difference about the 50-or-less employees, but if the company has an HRA plan, that in itself is considered a medical plan and the employees applying for individual coverage would need to know this when filling out the application. I agree with Jack that it sounds like this employer doesn't know what he's doing, and the reimbursement was reported incorrectly. At least the employee called and questioned it so that it can be corrected before any more time passes.

Nope.

No more pre-tax premiums for individual insurance policies? Stinson Leonard Street LLP Angela M. Bohmann USA October 10 2013 Author page » Over the years we have seen some employers, particularly small employers, choose to provide health coverage to their employees by paying all or part of the premium for individual insurance policies that the employees have obtained. Under an old IRS revenue ruling, Rev. Rul. 61-146, that type of premium subsidy could be provided on a pre-tax basis so long as the employer either paid the insurance company directly or reimbursed the employee for the cost of the coverage. Some employers have been considering that model for providing coverage to employees under the Affordable Care Act (“ACA”). Employers were hoping that by providing funds to employees to purchase coverage on the individual market, the employer could avoid the penalty for failure to offer coverage while limiting the employer’s cost. In recently issued guidance, the IRS and the Department of Labor have essentially said no to this alternative. Source: http://www.lexology.com/library/detail.aspx?g=1c3010c3-033f-4421-9749-d67e43140961

Double click on line 7, then click on Ln 7 - Wages, you might find something was added back to Line 7 for example misc income,excess reimbursement etc...