"The pattern is familiar: employees elect to reduce taxable wages through an Internal Revenue Code (IRC) Section 125 cafeteria plan; the employer uses those amounts to pay premiums for a fixed-indemnity healthcare policy; and the insurer pays a monthly 'wellness benefit' regardless of actual medical expenses incurred by the employee to offset the reduced wages.... In June 2023, the IRS issued Chief Counsel Memorandum 202323006 concluding that such fixed-indemnity "wellness" payments are taxable wages because they are not reimbursements of actual medical expenses within the meaning of IRC Section 105."  MORE >>