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Violet Said:

Extra paycheck for health insurance reimbursement?

We Answered:

1. Is the whole amount of paycheck taxable or only for the amount left after deducting health insurance spent?

The entire paycheck is taxable. It should also be subject to SS and Medicare, and the employer should be paying the employer's share of SS and Medicare.

2. Is this common practice? What's really benefit doing this rather than having the extra amount added into W2 from employer and contractor perspectives?

It is not common but not a unique situation. The employer is either misinformed or doesn't want to pay payroll taxes on this money. The employee may also want to think of this as a tax-free benefit, which it is not. I bet his W-2 will be wrong as well, with those "reimbursements" missing from Box 1 3 and 5.

Lillie Said:

What is mortgage insurance?

We Answered:

Absolutely.
You are a HIGHER risk buyer as you don't have 20% down payment. It is called PMI, private mortgage insurance.
Put more money down, build up equity, and dispense with PMI costs.