Learn how to use medical expenses to increase your employee's tax home pay and your profits!
Barnes & Noble.com
If you want to save money when it's time to give your employees a raise then read this book! Gina shows you how offering your employees a medical expense reimbursement instead of a raise will save both your employees and your company money.
The total compensation that you promised your employee after their annual raise does not change with this strategy. The only difference is that instead of providing their raise in cash wages you will provide that same amount in medical benefits. These medical benefits are actually allowable medical expense reimbursements.
Reimbursements are not considered taxable wages to your employee. If properly set up, these reimbursements are not taxable wages, neither you nor your employee will have to pay taxes on this amount of their compensation.