My perspective is to break it into two pieces: One as a fringe benefit expense (not W-2 reportable) as it is not comp but does scale with employees, and;
Second as a non-comp COGS component for people who are direct labor.
Any opinions on this treatment? Alternatives?
I concur with Keith's classifications, it's a fringe rather than a general insurance cost. Ideally I would recognize this cost as the payroll "consumes" premium based on payroll x rates, especially if the payroll is changing during the policy period.
