Page 6 - 2022 Insurity OE Guide FINAL
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Benefits and Taxability
Benefits Offered
Below are the benefits offered to you, who pays, the tax treatment of your premiums and the benefit carrier.
Employee Paid Benefits
Tax Treatment of
Line of Coverage Who Pays Carrier
Premium Paid
Medical The Company and You Pre-tax UnitedHealthcare (UHC)
Health Savings Account The Company and You Pre-tax Optum Bank
Dental The Company and You Pre-tax Guardian
Flexible Spending Accounts You Pre-tax UnitedHealthcare (UHC)
Vision Coverage You Pre-tax VSP
Supplemental Life and
Accidental Death and You After-tax Reliance Standard
Dismemberment
(employee, spouse and child)
Critical Illness and You After-tax Reliance Standard
Accident Insurance
Company Paid Benefits
Tax Treatment of
Line of Coverage Who Pays Carrier
Premium Paid
Basic Life and Accidental
Death and Dismemberment The Company Not taxable to beneficiary Reliance Standard
(AD&D)
Short-Term Disability The Company Taxable to employee Reliance Standard
Long-Term Disability The Company Taxable to employee Reliance Standard
Employers are allowed to provide employees
with $50,000 of tax-free group term life insurance coverage.
According to IRS code Section 79, any amount of coverage above $50,000
that is paid for by an employer must be recognized as a taxable benefit
and included on the employee’s W-2 as imputed income. Employees will see
this imputed income as a deduction and offsetting earning
on your semi-monthly payroll.
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