Guest SWH Posted November 25, 2008 Report Share Posted November 25, 2008 Okay. Have a client who is reimbursing for medical insurance, co-pays and dependent day care from a basket of funds that consists of only employer money. No ee money involved. They set this up without any input from us -- their frame of reference was Pub 15-B. Employees are NOT given cash for unused amounts, but those amounts can roll to the next year. There is no "formal" document on this just a blurb in the benefit information that they give to new employees. First of all, not quite sure how to handle the situation as a whole. Wouldn't the choice of medical costs vs daycare put me in a cafeteria type of document world with total EMPLOYER funding? Could I do an HRA in this type of situation (as opposed to an HSA -- which they don't want)? Then, my original question before I started with the fact that Pub 15-B (on page 6 of the 2008 version) says that the exclusion from taxable income rule "applies to contributions you make to an accident of health plan for an employee.." It goes on to state that the exclusion "also applies to payments you directly or indirectly make to an employee under an accident or health plan for employees that are...[for] payments or reimbursements of medical expenses..." The next subheading states that "[t]he plan may be insured or noninsured and does not need to be in writing." This is where I am getting hung up. Any help or comments would be appreciated? Link to comment Share on other sites More sharing options...
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