No and no. Let's go through the IRS link.
Under multiple scenarios, it says: 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 translates to:
Employee and employer both pay part of the premium. The portion paid by the employer is the % taxable income to employee when the insurance is received. This portion varies by state and sometimes employer. If your son paid 5% of the premium, then 95% of the income is taxable.
Now the question is what % is taxable. The IRS link says: The amount attributable to the employee’s portion of the contributions is excluded from the employee’s gross income,
This translates to:
This means the employee's nontaxable part is not in the form since it isn't taxable. The entire amount shown on the form is taxable income.
Conclusion: the entire amount on the form is taxable income federal and state.
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