How much will be imputed as taxable income to the employee?
The amount reported as taxable income for LDA coverage under the medical, dental and vision plans are determined each year. Federal tax laws require employers to report as taxable income the fair value of coverage but the IRS has never issued guidance on how “fair value” should be determined. While Georgetown follows a formula used by many employers, this is not guarantee that the IRS will agree with the amount of taxable income. We recommend that you consult with your attorney or tax professional if you have any questions.
Related Questions
- Will coverage provided to children who do not qualify as the employees tax dependent be taxable income to the employee (similar to how we currently handle domestic partners)?
- What benefits can be offered through a Cafeteria Plan to help lower the employee’s gross taxable income?
- How much will be imputed as taxable income to the employee?
