OPM: Partnership Employer Tax Benefits

Employer Tax Benefits

When Offering Long-Term Care Insurance to Employees

  • Employer contributions towards some or all of their employee's "Tax Qualified" long-term care insurance premium CAN be deducted in the same manner as premiums paid by the employer for health insurance under the Federal Tax Code.  In addition, premiums paid by the employer for "Tax Qualified" policies are not considered income to the employee. 
  • Long-term care insurance CANNOT be included as part of an employer's "Cafeteria Benefits Plan" or "Flexible Spending Arrangement."
  • Employers may select or carve out groups of employees to receive different premium contributions.
  • Insurance benefits received by the employee are NOT taxable, even when the employer contributed toward the premium. 
  • Please note, all Connecticut Partnership-approved plans are "Tax Qualified."

Source:  The federal Health Insurance Portability and Accountability Act that was signed into law in August 1996.  For more details contact a tax advisor or tax attorney.

 

For more information contact:
David Guttchen, Director
David.Guttchen@ct.gov
(860) 418-6318





Content Last Modified on 9/25/2007 2:41:50 PM