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Benefit-related tax tips

  • New federal requirements for 2013 make employers or providers of Third-Party Sick Pay responsible for withholding an additional 0.9% on earnings in excess of $200,000. This amount will be reported in Box 6 of the employee’s W-2. Unless eligible for transitional relief, employers will also need to continue their W-2 health benefits cost reporting. Learn more about this required reporting.
  • Unum will begin providing year-end reports and certain tax forms in January via Unum’s Employer Internet Services and U.S. Mail:
    • Annual and fourth quarter sick pay reports to short term disability customers generating their own W-2s
    • FUTA/SUTA reports to all applicable long term and short term disability customers
    • W-2s for employees who received long term disability benefits in 2013
    • W-2s for employees who received short term disability benefits in 2013 (unless their employer elected, in writing, to prepare the W-2s)
    • 1099s for claimants who received other Unum benefits in 2013 that may be taxable.
    Have your employees contact Unum’s Tax Unit at 1-800-845-2290 if they do not receive their W-2s or 1099s by Jan. 31.
  • Contact your Unum representative or call our Tax Unit before Dec. 27, if you are unsure who is responsible for preparing your employees’ W-2s or need additional guidance regarding taxation of disability benefits. After Dec. 27, Unum will charge an employer $200 per impacted employee to change who is responsible for W-2 reporting. Click here for IRS information geared to employer’s tax reporting obligations, especially Section 6 on Sick Pay Reporting.
  • Employers looking to streamline short term disability tax reporting obligations should consider adding Unum’s FICA match service to their disability plan prior to Jan. 1, 2014. With FICA match, Unum will process your employer FICA payments.