"The promoters claim that, by employees reducing their pay, the employer saves on employment taxes and the employees save on both employment and income taxes; yet, because of the ACA, the plan can provide a tax-free reimbursement of a significant portion of the employees' wellness premiums so that the employees do not see a reduction in their net take-home pay. In a Chief Counsel Advice memorandum, the IRS determined that the coverage provided by the wellness program plus the health screenings and other medical care provided are excludable from the employees' incomes. However, the IRS stated that any cash or cash-equivalent rewards, as well as the wellness premium reimbursement, are includable in the employees' gross incomes and subject to the FICA and income tax withholding rules."  MORE >>