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Tina, Lawyer
Category: Employment Law
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Experience:  JD, BBA, recognized by ABA for excellence.
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If a paragraph reads the following in my employment

Customer Question

If a paragraph reads the following in my employment contract, should it be a a taxed amount or not.
"You will receive a four hundred dollars ($400) per month as a reimbursement towards the cost of medical insurance, which yin are solely responsible for obtaining, as the Company does not have health insurance benefits at this time.
All staff that had this in their contract is under the impression that it is a net payment of $ 400.00 and not put part of the salary.
Do we have any grounds to stand on, if they know want to change the contract and make the $400.00 part of our salary.
Submitted: 3 months ago.
Category: Employment Law
Expert:  Alex Esquire replied 3 months ago.

Hello. My name is ***** *****

Thank you for your question.

I will be happy to provide you the information you are seeking for educational purposes only.

Generally, the reason as to why the employer might be forced to change as to how this compensation for medical insurance cost is classified (changing it to salary), is because new laws that prohibit private employers from paying any type of compensation to the employees to cover the cost of medical insurance coverage, so generally, the choice would be to either receive the compensation as salary or for the employer to provide medical insurance to its employees, which can be offered either at full cost or the employer can share the cost with the employee.

I wish you the best of luck!

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