"[It] is important to understand the tax issues affected by your administration of group health plan benefits for employees on leave, particularly for leaves that cross calendar years. If you provide group health benefits and an employee takes approved leave, it is likely that such employee has benefit continuation rights under federal or state law.... Employers have options for collecting premium payments, and each option comes with its own advantages and risks.... IRS guidance has made it clear that an employee cannot make pre-tax payments for premium payments for benefits to be received in a subsequent tax year."  MORE >>