Pomeroy Corporation has a company health-care plan for all employees.Albert,an employee,owns 15% of the stock.Philip,also an employee,owns 1% of the stock.The cost to the company of Albert's health plan is $3,000 and Philip's is $2,100.What amount of the health plan must Albert and Philip report as income?

Albert Philip

Question

Pomeroy Corporation has a company health-care plan for all employees.Albert,an employee,owns 15% of the stock.Philip,also an employee,owns 1% of the stock.The cost to the company of Albert's health plan is $3,000 and Philip's is $2,100.What amount of the health plan must Albert and Philip report as income?
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Albert Philip

Quizplus · Accepted Answer

The cost of employer-provided health insurance is generally not taxable to the employee, regardless of the percentage of stock owned.

Pomeroy Corporation Has a Company Health-Care Plan for All Employees