Fixed Indemnity Medical Plan Payments Are Taxable as Wages When Received If Premiums Were Not Paid from After-Tax Funds

Normally employees who have employer paid health insurance (or who pay for such insurance via §125 cafeteria plans) do not include either the premiums nor the medical costs paid by the policy as income.  But in Chief Counsel Advice 201703013 we are reminded that this treatment will not apply for payments from fixed indemnity health plans.

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