Coronavirus (COVID-19) News and Resources
Coronavirus (COVID-19) Webcasts
Subscribe to Free Daily Newsletters
Post a Job

Featured Jobs

Retirement Plan Processor
T Bank NA logo
T Bank NA
(Dallas TX)
Defined Contribution Account Manager
Nova 401(k) Associates logo
Nova 401(k) Associates
(Houston TX / Dallas TX / Scottsdale AZ / Telecommute)

Free Daily News and Jobs

“BenefitsLink continues to be the most valuable resource we have at the firm.”

-- An attorney subscriber

Get the BenefitsLink app LinkedIn

<< Previous news item   |   Next news item >>

Novel IRS Guidance on HRAs, VEBAs and Domestic Partner Benefits (PDF)
Katten Muchin Rosenman LLP Link to more items from this source
[Guidance Overview]
Mar. 3, 2014
"[An IRS private letter ruling to be published later this year] addresses the technical tax and benefit issues that arise when a Health Reimbursement Arrangement (HRA) (funded through a Voluntary Employees' Beneficiary Association (VEBA)) provides coverage to a domestic partner who does not qualify as a dependent under the Internal Revenue Code.... [1] The federal and state income and employment taxes reportable to the employee as a result of the coverage may be paid from the participant's individual HRA account.... [2] The VEBA will not lose its qualified tax-exempt status [provided certain requirements are met] ... [3] The VEBA is considered the 'employer' and is thereby obligated to conduct the tax withholding and reporting ... [4] The fair market value of the coverage provided to a non-dependent domestic partner is includible in the employee- participant's gross income, and is considered wages for FICA, FUTA and income tax withholding purposes."

Please click here to report this link if it is broken (for example, if you see a "404 File Not Found" error message after you click on the link above).
An important word about authorship: BenefitsLink® is providing a hypertext link to the item shown above, but is not the author of the item (unless otherwise specified).
© 2020, Inc.