The IRS been very clear on several occassions that employers are not allowed to use this strategy. Yet, employers continue to attempt it and some brokers and companies are still selling it!
Some large and small employers have considered sending full-time employees to the exchanges for individual coverage rather than offering group medical insurance. Companies such as Zane Benefits and some brokers are telling companies that they may do this and still take advantage of pre-tax medical insurance premium treatment by reimbursing employees’ individual medical insurance premiums…
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