sheila@sdclegal.com

I have reviewed these issues closely for a client within the LSA industry. Whether the benefits are subject to ERISA and/or wellness regulations depends on what is being offered. I have advised clients that the constructive receipt rules do apply, regardless of whether the employee uses/receives the entire amount available during the taxable year. Basically, absent the use of a cafeteria plan (which is restricted to certain benefits) or a deferred compensation/retirement plan, employer-provided benefits are taxable once they are made available, unless they fall within a specific fringe benefit section of the Internal Revenue Code. Finally, as you mentioned, employers tend to make a long list of items available for selection, so that it is not just pet owners, for example, who receive the bump in compensation. I hope that helps.