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P. Simmons
P. Simmons, Lawyer
Category: Employment Law
Satisfied Customers: 34525
Experience:  Employment Law Expert
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Employer giving medical allowance untaxed to certain

Customer Question

Employer giving medical allowance untaxed to certain employees that are not on a different label letter is that legal?
Submitted: 1 year ago.
Category: Employment Law
Expert:  P. Simmons replied 1 year ago.

My name is***** have over 16 years experience in the law. Should you like to chat on the phone I am happy to for a nominal cost. Let me know at any time during our question and answer session if you are interested I am happy to give you more details.

Sorry...what do you mean

not on a different label letter

What does that mean?

Customer: replied 1 year ago.
im sorry i meant labor level. my issue is my employer is compensating sales for not electing to take the company insurance--so they are paid an allowance every quarter for the not electing to take the insurance. is this legal? does it leave us open to a discrimination law suit?
Expert:  P. Simmons replied 1 year ago.

Thank you

That makes sense.

And I agree it is discrimination...that is, if they are allowing only certain folks to participate and not others, I agree that is a form of discrimination.

However, it is not illegal discrimination.

If the employer is discriminating based on a protected class (rage, gender, religion, national origin, age, disability) that would be illegal discrimination...but what you are describing, if they are not discriminating against a protected class? It would not violate the law

Please let me know if you have more questions. I am happy to help if I can. Otherwise, please rate the answer so I may get credit for my work.

Customer: replied 1 year ago.
does this payment qualify to be tax deducted?
Expert:  P. Simmons replied 1 year ago.

It can be. Federal and state law allow payments to be made to employees if the employees use the money for medical spending, to be tax free.

Please let me know if you have more questions. I am happy to help if I can. Otherwise, please rate the answer so I may get credit for my work.

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