My employer made contributions to my medical plan in 2014. They were not considered part of my salary. In 2015 there was a decision made by my employer to increase wages in the amount of the medical contribution in lieu of making a medical contribution. This was not discussed until we were required to participate in open enrollment and only 5 business days open enrollment closed. The wage increase was grossed up to offset the tax impact @ a 3.63% of wage but the increase itself will impact my tax bracket. I was making 115K base salary 2014 vs 118 K base salary 2015. Q: 1) is this a legal business practice 2) what can I do to minimize the impact to my 2015 tax filings with the IrS?
Additional Info: I live in PA and file as married at a higher single rate and already have $50.00 additional withheld from my taxes. In 2014 by total gross income was 228,000.00