1. You should reduce the gross amount by your employee portion of the income. It looks like the employee share is 18% of the premium which means 18% not taxable to you. See contribution calculator.
2. Simply subtract your portion from the gross amount and enter that as the taxable amount.
The IRS issued new guidance in Jan. The IRS guidance states:
- An employee who receives state paid family leave payments must include those amounts in the employee’s gross income.
- An employee who receives state paid medical leave payments must include the amount attributable to the employer portion of contributions in the employee’s gross income.
- This latter amount also is subject both to the employer’s and employee’s shares of Social Security and Medicare taxes.
- The amount attributable to the employee’s portion of the contributions is excluded from the employee’s gross income, and this amount is not subject to Social Security or Medicare taxes.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
