Taxes are a fact of life. But while tax season is wrapping up for most of us, taxes are a constant for your employer clients – especially when it comes to employee benefits.
At the outset, they can seem complicated. The impact of taxes on certain employee benefits, though, really boils down to one thing – who's paying the premium. Take disability income insurance. People who are too sick or hurt to work are paid a benefit. It won't replace their entire gross salary, but like medical insurance, it's a benefit.
Is it taxable? Possibly. The same goes for supplemental coverage, like accident or critical illness insurance. Depending on who pays the premium, the benefit may or may not be taxed. It shapes up like this:
Continue Reading for Free
Register and gain access to:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.