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Tax Treatment of Employer Wellness Programs

On Behalf of | Jun 13, 2016 | IRS |

The IRS Office of Chief Counsel recently released a memo from April 14, 2016, regarding the tax treatment of benefits an employee receives through an employer wellness program. Specifically, the Chief Counsel determined that cash benefits paid as a reward for or reimbursements of premiums paid related to participating in such a program may not be excluded from the employee’s gross income.  Health screenings and medical care provided under the wellness program are excludable.

To read the full memo, click here.