Corporate Health Plan: find out how the IR declaration works

Corporate Health Plan: find out how the IR declaration works

Do you have a corporate health plan, but don’t know how to declare it to the IRS? Every year, the situation is the same: people start to get organized to file their income tax return and often start to face some doubts.

If you are facing this same dilemma, you cannot miss reading this post until the end. Throughout the material, we will show you the correct way to make this declaration and explain the refund, the inclusion of dependents and several other relevant information.

So, stay tuned and clear your doubts once and for all!

How to declare the Corporate Health Plan?

A corporate health plan is one that a company contracts to offer to its employees as a benefit. In general, they offer better prices than an individual plan, offering consumers quality medical and hospital care at affordable costs.

It is important to emphasize that filing this declaration is a very interesting advantage for the taxpayer, since all health expenses can be deducted . Up to this point, there are not many doubts. However, when the time comes to file the annual Income Tax return, many people do not know how to proceed.

Therefore, the first piece of information to be passed on is that the employer must present the Income Statement, listing everything received from its employees in terms of using the company health plan.

On the other hand, the user of the service must declare these expenses, informing the CNPJ of the company to which he is linked — it is worth noting that the charges must be made to the employer, and not to the participants of the corporate health plans.

How does the entrepreneur declare this expense?

The company must also declare expenses with the corporate health plan. However, it is important to emphasize that it will only report the amounts that it paid itself. In the appropriate field, it must list all health plan expenses throughout the year with employees. Likewise, the Income Report must include the amounts that it received from its employees and passed on to the operator.

How and why to declare expense reimbursement?

One of the most common mistakes when declaring a health plan is not reporting reimbursements received. Many times, users, even though they are covered by a plan, choose to consult a doctor who is not part of the accredited network. If your plan reimburses these amounts, in full or in part, you must be very careful when submitting the declaration.

Large healthcare and dental providers make a specific Income Tax Statement available on their website, containing all amounts and payment instructions.

In the “Payments and Donations Made” box, you must enter the value of the consultation and, in the same place, the reimbursed amount must be entered as a non-deductible portion.

It is important to note that failing to report that this amount has been refunded may result in you being subject to a tax audit. This is a risk that needs to be clearly explained, as tax evasion can result in fines and a lot of headaches.

What happens to the declaration in cases of fixed contribution and co-participation?

It is common for companies to pay a portion of the plan for their employees and pass on some of the amount to their employees. If this is your case, it is important to make it clear that you can only deduct the amounts that you paid yourself. Therefore, the portion paid by the company should not be declared.

Be careful when filling out this form. Since the company will probably inform you that it has paid part of the plan, the IRS may detect the error and interpret it as fraud. In other words, you may be caught in the red tape, have to rectify your declaration and face fines and other penalties.

How to declare the status of dependents?

Even though they are corporate plans, the plans allow dependents to be included and receive coverage.

However, it is interesting to note one situation. If a dependent is included and the company does not cover the full amount — that is, it only pays the amounts related to its employee — the taxpayer can report the expenses related to his dependent normally.

To make it clear, imagine that the plan cost for you and your child is R$500. The employer covered the R$350 for your personal use, and you paid the R$150 for your dependent. Therefore, this monthly expense can be fully deducted.

This is important information, since this type of error is common in taxpayers’ and companies’ own declarations. Therefore, be careful not to fall into the dreaded tax net.

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