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.
Employers have pretty specific rules for health insurance reimbursement programs. The goal was to prevent large employers from skirting the mandate by reimbursing Marketplace subsidized coverage. The end result are some twists and turns that employer's using Health Reimbursement programs have to navigate to make sure they are in compliance. From what we can tell, the intentions are good from most parities here. However, your specific situation could be a result of your employer trying to comply with the new regulations. Perhaps offering the amount as compensation, and then taking the correct deductions, is the best way for your employer to comply with the law.
We will look for specific wording in the law or further regulations that could be the reason your employer "has to add the amount to your paycheck under ObamaCare". If anyone else has a solid reason, please cite it below.