EP 140: IRS Weighs in on Wellness Payments of Employer-Funded Fixed Indemnity Plans

NFP's Insights from the Experts

In this episode, Chase Cannon and Suzanne Spradley discuss a recent IRS memo on wellness benefit payments via employer-funded fixed indemnity plans. Chase outlines the various iterations and structure of vendor-promoted wellness programs, which usually purport huge employment tax savings for employers. Chase and Suzanne outline the relevant tax rules and where these programs usually run afoul of those laws. The two close with a discussion on the recent IRS memo and what it means for employers considering these types of programs.