Estimated Tax Tip Savings: Each employee can easily save $100-$1,200 or more per year depending on company contribution and his or her tax bracket; companies can save thousands of dollars depending on company contribution and tax bracket

The Affordable Care Act allows you to pay for employee insurance by increasing taxable compensation. But that’s not the route you want to take, since it means more taxes for both you and your employees. Discover three options for paying for employee insurance without hiking up your tax bill.

Question

I plan to reimburse our employees for medical insurance (up to $280/mo.) and, because of the Affordable Care Act, tax them on this benefit. My question: Is it true that you cannot reimburse employees even though they are taxed on the reimbursements?

Answer

Not true. You can increase ... Log in to view full article.