The new health care law mandated that adult children be eligible for coverage under their parents’ group health plan “up to age 26.” Did that mean until they turned 26, or are they covered during the entire year they’re 26? Employers were confused. The U.S. Department of Labor set the record straight. The answer: up until their 26th birthdays.
The confusion stems in part from another part of the health care reform law that made such coverage a tax-free benefit. Now the IRS has clarified that health coverage provided for employees’ children under age 27 is tax-free to the employee. That means employers with cafeteria plans may permit employees to immediately make pretax salary-reduction contributions to provide coverage for children under age 27. Employers have until the end of 2010 to amend plan language to incorporate the change.
Like what you've read? ...Republish it and share great business tips!
Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...
We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.
The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.
" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/16610/feds-clarify-tax-status-of-dependent-coverage "
Related Articles...
-
No matches
