Flu shots - de minimis fringe benefit?

[J2D2]

Employer arranges to have health professionals on site to give flu shots to employees. Employer pays the full cost of the shots and does not report the value of the shots in the income of those employees who elect to get stabbed.

Has anyone addressed the issue of whether such an arrangement qualifies as a de minimis fringe benefit?

[E as in ERISA]

Why not exclude them under 105? De minimis usually applies to donuts in the morning, etc. where it's impractical to keep track of what each person receives. I assume they are keeping track of who is getting shots....

[GBurns]

It should be a benefit from your accident and health plan and therefore excludible from the employee's gross income under 105 and 106.

[J2D2]

Thanks for the responses. There are (at least) a couple of reasons I was hoping to stay outside IRC 105 & 106. First, the shots are available to all employees, even those who are not participating in the employer's group health plan. Second, if the employer otherwise offers fully-insured group health benefits, would it have to adopt a separate plan under 105(h) just to cover the flu shots?

[Guest b2kates]

If the employer sponsored a flu shot only benefit plan, for all employees - even those not participating in the employer's group health plan, the program would easily satisfy 105(h).

[401 Chaos]

I would agree that you could probably just call this it's own little health plan under 105(h) if you had to. I haven't researched the fringe benefit area lately but seems like there is probably something that would cover this--hasn't the IRS essentially allowed general first aid and minimal welfare benefits as de minimis fringes. Given their approval of holiday gifts and trinkets (i.e., the Christmas hams, etc.) that can be accounted for and valued without major issue, I would be inclined to argue these are similarly within the general first aid de minimis fringe (see Tax Management Portfolio # 394), particularly if you consider the benefits which on-site flu shots afford the employer (less absenteeism both in terms of initially receiving shots and in employees later contracting the flu, etc.) rather than any purely one-sided benefit to the participants.

[GBurns]

There is no such thing as a 105(h) health plan and I have never seen a way to set up a plan "under 105(h)" either.

[Guest b2kates]

GBurns, all I meant by 105(h) was a self funded plan that provided only one benefit, the flu shot. since it is self funded it falls withing the parameters of 105(h). Since it is available to all employees it should pass the discrimination tests.