Travel Assistance Programs

[card]

Can someone point me in the right direction for the taxation of Travel Assistance benefits for employees and spouses? I don't have the full details yet but I am told the program primarily provides referrals so employees can find English speaking physicians whereever they may be traveling.

Thanks!

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[mroberts]

Travel Assistance programs usually go a little further than that. They will also provide treatment for employees while out of the country which is obviously huge since being a member of BCBS doesn't mean diddly squat if you're in Brazil. This doesn't mean the coverage will pay for the expenses, but it in essence, gives you a line of credit until you can work with your insurance when you get back.

As far as taxation goes, I'm not exactly sure what you're asking. It sounds like you're wondering if your employees get taxed on it. A policy like this is very inexpensive and employers usually pick up the tab. With some AD&D policies it actually comes attached with no extra cost.

[card]

Hi-

Thanks. Yes I was asking about the taxation to employees. For example, if the employer picks up the tab, are the benefits and coverage excludable under 105/106? What about coverage for the employee's spouse? Any 105(h) issues (I assume not).

I haven't been able to find any IRS guidance.

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[mroberts]

I have never heard anything about them being taxed. Like I mentioned, it is a very inexpensive policy so if there were any tax implications, they would have to be minute. I wish I could be more help!