There are limited ways that companies can offer tax-sheltered compensation today. Although they’re not direct compensation, expense reimbursed insurance plans have compensation power since they can reimburse employees what they are spending out-of-pocket on healthcare expenses.

Reimbursed Insurance Plans with Compensation Power

There are three notable advantages to using expense reimbursed insurance plans as a form of compensation:

  1. They are tax-efficient because premium and reimbursements won’t incur payroll taxes. So, employers spend less to give more.* The overall value for the employee is dramatically higher with annual coverage limits that range from $5,000 to $100,000. Plus, the coverage is designed to help meet the specific healthcare needs of each family member.
  2. With these types of benefits, employers are giving employees the #1 benefit they care about:  healthcare insurance.
  3. It can have a lasting impact all year through with every direct deposit reimbursement and Rx Visa® swipe, versus a one-and-done bonus.

Reimbursed Insurance Plans with Compensation Power

There are three notable advantages to using expense reimbursed insurance plans as a form of compensation:

  1. They are tax-efficient because premium and reimbursements won’t incur payroll taxes. So, employers spend less to give more.* The overall value for the employee is dramatically higher with annual coverage limits that range from $5,000 to $100,000. Plus, the coverage is designed to help meet the specific healthcare needs of each family member.
  2. With these types of benefits, employers are giving employees the #1 benefit they care about:  healthcare insurance.
  3. It can have a lasting impact all year through with every direct deposit reimbursement and Rx Visa® swipe, versus a one-and-done bonus.

*This is not local, state or federal tax advice as each person and company is unique. It is recommended that you seek the independent counsel of a professional tax adviser.