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rrevuri: Add as a Colleague
Steve couple of things here. If I am not wrong you are mandated to cover your at least 50% of health insurance premium cost of your employee if he is your W2 employee. If he is covered by his wife's plan than he should have signed an opting out form. As far as opting out credits it is entirely upto you to compensate your employee the way you feel fit. Either you can make it a policy to compensate for opting out or compensate without making it a policy. But make sure that you are treating all employees opting out equally in doing so. Hope this helps.

11/23/2009 11:29:30 AM EST

moorejoy2: Add as a Colleague
11/19/2009 12:03:26 PM EST

I am not a benefit guru, but to answer your question I would say we need to understand the situation a little more. It sounds like you have one employee. You did not offer health insurance and that employee chose to be covered by his wife's plan. The employee then had some health care costs that were not covered by his wife's plan and you are wanting to reimburse him for that? If it were me, and my company was not providing health care coverage, I would not even get into the fact that it's health care related. I would discuss with my CPA providing a bonus to the employee and gross it up to cover taxes. However, I would rely on my CPA to make sure this was an acceptable option.