Tuesday, March 1, 2011

Will the money that an employer pays toward employee health insurance be reported to the irs as income?

I received an email from my employer discussing upcoming changes in insurance based on the new health bill. If I understood the email correctly it seemed to be saying that any funds that the company puts toward my health insurance premiums will be reported to the irs as income starting in 2011. Is the accurate and if so will that new "income" be taxed at the same rate as my earnings? thank you
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I don't think it is accurate, at least as far as a direct connection to the new health care bill is concerned. Discussion of taxing employer provided health insurance is focused on so-called Cadillac plans, and taxation there is deferred several years. You would have to post the exact wording of the e-mail (company name left out, of course) to let someone figure it out.
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