My company has agreed to pay $200 a month for 4 of the 6 full-time employees to get individual health insurance. The other 2 do not need it. Question 1: Is the $200 taxable? Question 2: If one employee’s health insurance costs less than $200, are they entitled to the full $200. Question 3: Does my employer have to offer some form of compensation for the 2 employers who do not need insurance?
#2 That is between you and the employee and their is no law that governs the policy for reimbursement of employee paid health insurance. You are essentially providing them an increase in salary to allow them to afford their own health insurance. #3 No Answer by moderator — May 28, 2009 @ 1:15 pm No CommentsNo comments yet. Leave a comment |
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#1 Any compensation paid to employees is taxable income. Consult with your tax accountant to determine the best way to show this “income” on a W2. Since the employees are responsible for acquiring their own health insurance, this compensation is simply a bonus and not a health insurance expense to the company.
