Tax Advantages Of Providing Insurance Coverage To Employees

Employer payments toward health insurance coverage for employees are typically deductible as a business expense of the employer. They are therefore an excellent fringe benefit for workers, who might otherwise have to purchase their own health insurance with after-tax dollars or who might leave the employer to work for a competitor who offers a health insurance plan. Moreover, group rates obtainable by employers are often superior to rates obtainable by individual employees on their own.

For Additional Information Visit The Following:

• The Internal Revenue Service official documentation on the tax treatment of fringe benefits in general, containing sections on Cafeteria Plans, health insurance, and HSAs, at www.irs.gov/publications/p15b/ar02.html
  
  
• A "Primer On Tax Subsidies For Health Care," a narrated power point demonstration prepared by The Kaiser Family Foundation, at www.kaiseredu.org/tutorials/taxsubsidies/player.html
  
  
• "Tax Subsidies For Health Insurance," another report prepared by The Kaiser Family Foundation, at www.kff.org/insurance/upload/7779.pdf