Health insurance Reimbursement Added to Paycheck?
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I have health insurance which I pay monthly. My employer reimburses me the premium amount that I pay I receive it in the form of a expense check. My employer now tells me under Obama care he will add the amount on one of my weekly pay checks which would be taxable. Please explain the reasoning behind this. Am I to believe this will also be subject to ss tax also? My God I worked all my life and am collection ss paying back into it and not increasing it very much. I’m not happy.
Doran
My employer told me this past week that the reimbursement can no longer be put into my check but must be put into my 401k now instead. Is this true and if so why would my reimbursement not show on my check or as a payment into my 401k this past week? My boss says it will take time..30..60..or 90 days. Is this normal? Legal?
Thank You
Dr. T
My employer is also doing the same thing. It seems a bit shady to me. From what I can tell, the reason they are doing it is to avoid some kind of penalty. I can not find any information about what the penalty is for but I am also currently investigating it. Please let me know if you get any additional information about it.
Thanks
Christina
I am also looking for help with this matter! My husband’s employer is no longer able to provide us with a reimbursement, however, has agreed to up the salary accordingly – which results in more taxable income and a significantly lower amount to apply toward premiums. Our individual carrier has agreed to terminate our policy based on this circumstances, but no one has agreed to re-write a policy for us mid-year. We need to find a cheaper plan to help offset our costs. Surprisingly, no one seems to no much about this, but I imagine it is affecting thousands of small business around the country. Help!
ObamaCareFacts.com
If you lose coverage during the year you can apply for coverage on the Health Insurance Marketplace (HealthCare.Gov) via a 60 day special enrollment window starting on the day you lose your coverage. This is only true if the old policy is lost for any reason other than non-payment or fraud. Make sure that the way in which you are losing your plan will qualify you for special enrollment, if not you may want to choose to continue the plan (or take COBRA). The cheapest way to get a plan is with cost assistance or through an employer with an employer contribution, otherwise you are simply paying the full amount based on your region.