Guest calcu Posted June 30, 2004 Posted June 30, 2004 We have a situation where a self-insured health plan would like to give employees who are participants in the health plan and who do not smoke a certain amount of money per year. They will not use the money to reduce health insurance premiums, they want to just give it to the participants on their paychecks? Has anybody done this? How would we handle COBRA continuees? Any insight or guidance would be appreciated.
oriecat Posted June 30, 2004 Posted June 30, 2004 Just my thoughts, not sure of anything... If the money is coming on the paycheck then it is coming from the employer not the health plan, and it would just be a taxable fringe benefit. COBRA only applies to group health plans so it would not be an issue. I believe the benefit would be taxable, as it doesn't really fall under any of the exclusions (that I can think of). It wouldn't fall under the health benefits exclusion because it isn't paying for any actual medical or health expenses. I also believe that the payments would likely be considered non-discretionary bonuses, and thus required to be included for calculation of the regular rate of pay for overtime purposes.
Guest calcu Posted June 30, 2004 Posted June 30, 2004 Sort of my thoughts as well. Thank you very much for your comments.
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