If an employer pays health insurance benefits for the employee and dependents, are both the employees and the dependents benefits income to the employee?
If an employer provides health insurance for the employees, the benefit provided is not taxable to the employee. An employer can generally deduct the cost of a group health plan on the “employee benefit programs” line of their business income tax return. Group health plan defined: This (including a self-insured plan) is a plan that provides medical care to your employees, former employees, or their families. The plan can provide care directly or through insurance, reimbursement, or otherwise. The employer can exclude the cost of providing group health insurance to an employee from his or her wages.
Related Questions
- If an employer pays health insurance benefits for the employee and dependents, are both the employees and the dependents benefits income to the employee?
- What if the employee refuses to sign medical insurance enrollment forms to enroll the dependent in the employer sponsored health insurance plan?
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