Monday, May 30, 2011

I want to offer employees an annual amount of $ for them to allocate to the benefit costs of their choice.?

Am I restricted in which benfits I can allow them to contribute to? For example: I allocate $6000 to each employee. They can choose to cover all or parts of their health, dental , Life, STD insurance premiums etc. What about putting it into the 401k? I need some direction and need to have a starting place for my research. Can you help?
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This is a good question to discuss with a tax accountant. You are not restricted to anything, but some things may be tax-deductible, others may not be, and yet others would only be tax-deductible uo to a certain limit, which could be either an absolute number or a percentage of employee's earnings...
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