More and more employers and insurance companies are providing incentives and rewards to employees and their covered dependents to encourage participation in wellness programs. These programs are designed to improve an individual’s overall health and well-being and to avoid, and even treat, chronic health conditions.
While there are many laws governing wellness programs, federal income tax implications to employers and employees are often overlooked.
Click here to read Money and Trinkets Provided for Wellness—the full article that discusses:
- General taxation of wellness incentives
- Employer-provided health benefits (e.g., reductions in monthly or annual health care premiums)
- Very minimal benefits (e.g., water bottles and healthy snacks)
- Not-so-minimal benefits (e.g., a bicycle as a raffle prize or award)
- Cash and gift cards
- Athletic facilities and gym memberships
- Discounts on employer goods and services
- Additional paid time off, and
- Wellness incentive reporting on Form W-2.
Vicki M. Nielsen is of counsel in the Washington, D.C. office of Ogletree Deakins and Aimee E. Dreiss is an associate in the Chicago office of Ogletree Deakins.