Does anyone have the answer?


W

Wolfgang Rochow

I posted the following text on June 22nd; however, there were no responses.
Perhaps the subject line "Private Health Services Plan" was perceived as
possible spam and, therefore, ignored.

However, if anyone has the answer to my question, I would appreciate your
feedback. The posting was:

In Canada we have a "Private Health Care Plan" instituted under the Income
Tax Act.

Put simply, it allows an employer to reimburse an employee for medical
expenses incurred to a stated maximum per annum, usually by job
classification. The funding is normally handled by a Trustee (cost plus an
admin fee). The resulting total cost is a legitimate operating cost of the
employer (for tax purposes) but the reimbursement is a non-taxable benefit
to the employee.

The Question: Is there similar legislation in the USA and, if so, could you
direct me to the applicable information source?

Thanks in advance.

Wolfgang

(e-mail address removed) (remove contact to email)
www.gestalt.com
 
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B

Bob

Wolfgang Rochow said:
I posted the following text on June 22nd; however, there were no responses.
Perhaps the subject line "Private Health Services Plan" was perceived as
possible spam and, therefore, ignored.

However, if anyone has the answer to my question, I would appreciate your
feedback. The posting was:

In Canada we have a "Private Health Care Plan" instituted under the Income
Tax Act.

Put simply, it allows an employer to reimburse an employee for medical
expenses incurred to a stated maximum per annum, usually by job
classification. The funding is normally handled by a Trustee (cost plus an
admin fee). The resulting total cost is a legitimate operating cost of the
employer (for tax purposes) but the reimbursement is a non-taxable benefit
to the employee.

The Question: Is there similar legislation in the USA and, if so, could you
direct me to the applicable information source?

Thanks in advance.

Wolfgang
In the US an employer can pay the health care premium for the employee
directly to the provider but I don't know of any allowable "medical
reimbursement" plan where the money is given directly to the employee if
that's what you mean
 
B

Bob

Bob said:
In the US an employer can pay the health care premium for the employee
directly to the provider but I don't know of any allowable "medical
reimbursement" plan where the money is given directly to the employee if
that's what you mean
and there is also a "section 125" plan where the employee can pay the health
care premiums with "pre-tax" dollars and avoiding any taxes on the cost of
medical health plans
 
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W

Wolfgang Rochow

Bob,

Thanks for your feedback.

Yes, in our situation it does not involve premiums but the actual medical
expenses. It's becoming very popular. Here is a link to the CRA (Canada
Revenue Agency), if you or anyone else is interested in seeing what this is
all about (of course, one has to study other info as well).

http://www.cra-arc.gc.ca/E/pub/tp/it339r2/it339r2-e.html

Wolfgang
 

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