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Health Incentive Plan (HI Plan)
Benefits & Compensation
Health Incentive Plan (HI Plan)
Exchange ideas about health plans, retirement, work/life benefits, and employee assistance.
Has anyone had any experience with the Hi Plan. It allows employers to deduct the cost of group insurance expenses by having the employee assume full cost of their benefit by exchanging pre-tax pay fo
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Forums » Topic Forums » Benefits & Compensation » Health Incentive Plan (HI Plan)
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Health Incentive Plan (HI Plan)
posted at 5/25/2000 4:13 AM EDT
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Posts: 127
First: 5/10/2000 Last: 5/13/2010 |
Has anyone had any experience with the Hi Plan. It allows employers to deduct the cost of group insurance expenses by having the employee assume full cost of their benefit by exchanging pre-tax pay for the cost of benefits. The employer will save on FICA, which could be substantial. Here's the actual process:1). employee pays total premium, pre-tax 2). premium is remitted to carrier 3). contribution is credited to employee 4). employee is reimbursed by employer, non-taxable. Do you see any flaws with tax code? Why wouldn't more employers use this plan? |
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Health Incentive Plan (HI Plan)
posted at 7/6/2000 2:31 AM EDT
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Posts: 20
First: 10/14/1999 Last: 3/24/2009 |
Regarding step #4: employee is reimbursed by employer, non-taxable.
On what grounds does an employer reimburse non-taxable? I thought the only way an employee can avoid taxes on medical premiums is for the employer to pay the insurance company directly. Has there been a change in the regs? |
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