Employer paid Health insurance premiums

[Guest Marv]

I understand how the employee contribution of health insurance premiums is pre-taxed under a cafeteria plan. What about the employer's paid portion? Can the employer have the employee pay the premium & reimburse the employee on a pre-tax basis?

[Joe Priselac]

Marv,

I'm not sure that I understand your question. Are you asking if the employer paid portion of health insurance is taxable to the employees receiving the benefits? The answer is no. Under IRC Sec. 106(a). You therefore don't need to

utilize a Section 125 plan to obtain the tax exempt status for the health benefits. Ihope this answers your question.

[Guest G Burns]

I think that what Marv meant to ask was. Can the employee pay the entire premium (employee and dependent coverage)on a pre-tax basis under the 125 plan and THEN be reimbursed by the employer for the portion that the employer would have paid directly to the insurer (employee coverage) and not be taxed on the reimbursement ?