Pet Insurance

[JackS]

A plan sponsor provides pet insurance to it's employees as a benefit.  The employer pays the premiums and the employees are taxed on them.  Their plan excludes "Fringe Benefits" from the definition of plan compensation.  Does anyone know if this "income" should be excluded form plan comp or included in plan comp? 

[Larry Starr]

2 hours ago, JackS said:

A plan sponsor provides pet insurance to it's employees as a benefit.  The employer pays the premiums and the employees are taxed on them.  Their plan excludes "Fringe Benefits" from the definition of plan compensation.  Does anyone know if this "income" should be excluded form plan comp or included in plan comp? 

It's not a fringe benefit; the employer is paying a personal expense of the employee and it should be included in W-2 and withholding and SS taxes are applicable.