Sr. Advanced Markets Consultant, Ash Brokerage, Greater NYC Area
Yes! In fact, deductions for employer sponsored health insurance is the top tax "expenditure" in the tax code, representing more lost tax revenue than deductions for IRA / Pension contributions (2nd largest) and deductions for mortgage interest (3rd largest); it costs five times more lost revenue than for deductions for charitable donations.
Whether the employer pays 100% of the health insurance premium or just some of the premium, the employer deducts whatever premiums it pays and the employee does not have to recognize the premiums paid on his or her behalf as taxable income.
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Whether the employer pays 100% of the health insurance premium or just some of the premium, the employer deducts whatever premiums it pays and the employee does not have to recognize the premiums paid on his or her behalf as taxable income.