What Happens If Your Family Compensates You For Health Insurance.......

[Anonymous]

Why don’t you just ask for a higher salary instead of having them give you money for health insurance that you don’t need. It just makes you look bad and most employers I know ask to show proof at the beginning of each year.

[Anonymous]

Anonymous wrote:But you don't use the money for health insurance. New hiring family is offering two different salaries; one with, one without. However, the health insurance option is more money. I'm covered by my husband's plan. Can I get in trouble if I do this? Tax wise it would probably be better for the employer as well right? Please no moralizing, just straight answers if you know.

Lawyer here. You are committing FRAUD.

[Anonymous]

Your husband's policy costs more because you are on it, can you use the money offered towards paying the difference between cost of his policy with and without you on it?

[Anonymous]

Employer here. We cover our nanny's insurance and it has been a great way to offer increased compensation while minimizing the tax hit.

We pay legally so to do the insurance we require proof of insurance and we pay that separately from payroll (though some payroll services now offer that service so you can do it all at once).

I agree w/ a pp who suggested negotiating a higher salary, based on not needing the insurance - but recognizing that the salary costs more for the employer.

As an employer I would respond favorably to that approach. I would not respond well to a fraudulent approach. Honesty/integrity/trust is a non-negotiable for me in a nanny hire.

[Anonymous]

OP, the rules for the tax-free per month stipend say that you have to prove it's being used for health care premiums. Your employer is required to keep records, which can be audited by the IRS. If no one ever audits anyone, then you and your employer will not get caught. However, yes, legally, you must use your health care stipend for health care, or it becomes taxable income.

I had my nanny send me a copy of her receipt for paying her premium each month, and so I had it if I got audited.

[Anonymous]

Anonymous wrote:OP, the rules for the tax-free per month stipend say that you have to prove it's being used for health care premiums. Your employer is required to keep records, which can be audited by the IRS. If no one ever audits anyone, then you and your employer will not get caught. However, yes, legally, you must use your health care stipend for health care, or it becomes taxable income.

I had my nanny send me a copy of her receipt for paying her premium each month, and so I had it if I got audited.

So could the money be used to pay towards the policy her spouse has her on if she can show the difference in the cost without her on it? Does it have to be a separate policy?

[Anonymous]

Anonymous wrote:

Anonymous wrote:To the PP Above: ^^^^

Basically OP will not disclose the fact to this new family that she already has health insurance/coverage which would be a lie in & in itself.
Then she would again lie by saying she will use any extra cash they give her for health insurance when in fact she will not.

Personally, I would not want a person w/so little integrity watching my child(ren) + even being in my home.

Your bosses would be writing it off on their taxes and you can get in trouble if they require proof that you are insured under them.

OP here and that's why I was asking in the first place. And as for integrity it don't pay the rent but if it makes you an insufferable snob rootie kazootie for you honey.

Not PP, but the desire to have a person with some integrity watch one's children is fairly widespread. Nor does it make PP an insufferable snob. Don't cheat. Be a role model for those children you are charged with caring for.

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP, the rules for the tax-free per month stipend say that you have to prove it's being used for health care premiums. Your employer is required to keep records, which can be audited by the IRS. If no one ever audits anyone, then you and your employer will not get caught. However, yes, legally, you must use your health care stipend for health care, or it becomes taxable income.

I had my nanny send me a copy of her receipt for paying her premium each month, and so I had it if I got audited.

So could the money be used to pay towards the policy her spouse has her on if she can show the difference in the cost without her on it? Does it have to be a separate policy?

I don't think it matters as long as it's paying for the premium. If her husband's policy is actually paid for by his work, however, and she's just going to show proof of coverage, not proof of payment, then, no. It can be used to reimburse "medical expenses," which can be something other than plan premiums.

This is a really good guide to what you are allowed to do. It is called a Qualified Small Employer Health Reimbursement Arrangement: https://www.takecommandhealth.com/qsehra-guide#reimbursement-rules

You can also search QSERHA on the IRS site for the official documents. I actually liked reading the IRS documents, because they give you a lot of hypothetical situations and tell you what the deal is, and they give you sample letters you can give your employee to meet the legal requirements.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:To the PP Above: ^^^^

Basically OP will not disclose the fact to this new family that she already has health insurance/coverage which would be a lie in & in itself.
Then she would again lie by saying she will use any extra cash they give her for health insurance when in fact she will not.

Personally, I would not want a person w/so little integrity watching my child(ren) + even being in my home.

Your bosses would be writing it off on their taxes and you can get in trouble if they require proof that you are insured under them.

OP here and that's why I was asking in the first place. And as for integrity it don't pay the rent but if it makes you an insufferable snob rootie kazootie for you honey.

Not PP, but the desire to have a person with some integrity watch one's children is fairly widespread. Nor does it make PP an insufferable snob. Don't cheat. Be a role model for those children you are charged with caring for.

To the helpful posters, thank you for your info and insight. For the sanctimonious holier than thou posters, I've been caring for children for many many years and my financial compensation and all the details thereof rarely come up in conversation with the under five set. The comment about integrity from a PP was unnecessary and annoying. I mean I asked in the first place right? That's integrity!

[Anonymous]

Anonymous wrote:

Anonymous wrote:But you don't use the money for health insurance. New hiring family is offering two different salaries; one with, one without. However, the health insurance option is more money. I'm covered by my husband's plan. Can I get in trouble if I do this? Tax wise it would probably be better for the employer as well right? Please no moralizing, just straight answers if you know.

Lawyer here. You are committing FRAUD.

Saying you are a lawyer is meaningless as it may not be your area of law. It is not illegal and common with bigger companies. My husband in the majority of companies he works for is offered either health care or a cash amount if we can prove we have outside coverage, which we do. Its particularly common for military retirees who get tricare. Don't speak on something you don't know about. He has either gotten it broken up in each pay check or a lump sum.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:But you don't use the money for health insurance. New hiring family is offering two different salaries; one with, one without. However, the health insurance option is more money. I'm covered by my husband's plan. Can I get in trouble if I do this? Tax wise it would probably be better for the employer as well right? Please no moralizing, just straight answers if you know.

Lawyer here. You are committing FRAUD.

Saying you are a lawyer is meaningless as it may not be your area of law. It is not illegal and common with bigger companies. My husband in the majority of companies he works for is offered either health care or a cash amount if we can prove we have outside coverage, which we do. Its particularly common for military retirees who get tricare. Don't speak on something you don't know about. He has either gotten it broken up in each pay check or a lump sum.

Np. You're not understanding what OP is saying. She's not being offered a cash amount.if she has her own insurance. What she's being offered is :

$X/hr OR $X/hr plus $Z specifically for health insurance (a stipend that gets treated differently tax wise).
OP is asking if she can say she's taking Z for health insurance, but actually pocketing it.

Try better reading comprehension before you get all high and mighty.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:But you don't use the money for health insurance. New hiring family is offering two different salaries; one with, one without. However, the health insurance option is more money. I'm covered by my husband's plan. Can I get in trouble if I do this? Tax wise it would probably be better for the employer as well right? Please no moralizing, just straight answers if you know.

Lawyer here. You are committing FRAUD.

Saying you are a lawyer is meaningless as it may not be your area of law. It is not illegal and common with bigger companies. My husband in the majority of companies he works for is offered either health care or a cash amount if we can prove we have outside coverage, which we do. Its particularly common for military retirees who get tricare. Don't speak on something you don't know about. He has either gotten it broken up in each pay check or a lump sum.

Np. You're not understanding what OP is saying. She's not being offered a cash amount.if she has her own insurance. What she's being offered is :

$X/hr OR $X/hr plus $Z specifically for health insurance (a stipend that gets treated differently tax wise).
OP is asking if she can say she's taking Z for health insurance, but actually pocketing it.

Try better reading comprehension before you get all high and mighty.

OP here and yes this poster is correct. But I didn't do it. I just asked if it was ok. Everyone says no so I'm not going to do it. Everyone happy now?

[Anonymous]

Anonymous wrote:

Anonymous wrote:To the PP Above: ^^^^

Basically OP will not disclose the fact to this new family that she already has health insurance/coverage which would be a lie in & in itself.
Then she would again lie by saying she will use any extra cash they give her for health insurance when in fact she will not.

Personally, I would not want a person w/so little integrity watching my child(ren) + even being in my home.

Your bosses would be writing it off on their taxes and you can get in trouble if they require proof that you are insured under them.

OP here and that's why I was asking in the first place. And as for integrity it don't pay the rent but if it makes you an insufferable snob rootie kazootie for you honey.

Negoicate the higher amount and let them know you are covered under your husband and don't need it. You don't have to be dishonest about it. Technically she is still paying insurance through her husband.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:To the PP Above: ^^^^

Basically OP will not disclose the fact to this new family that she already has health insurance/coverage which would be a lie in & in itself.
Then she would again lie by saying she will use any extra cash they give her for health insurance when in fact she will not.

Personally, I would not want a person w/so little integrity watching my child(ren) + even being in my home.

Your bosses would be writing it off on their taxes and you can get in trouble if they require proof that you are insured under them.

OP here and that's why I was asking in the first place. And as for integrity it don't pay the rent but if it makes you an insufferable snob rootie kazootie for you honey.

Not PP, but the desire to have a person with some integrity watch one's children is fairly widespread. Nor does it make PP an insufferable snob. Don't cheat. Be a role model for those children you are charged with caring for.

Then quit your job and care for your own kids.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:But you don't use the money for health insurance. New hiring family is offering two different salaries; one with, one without. However, the health insurance option is more money. I'm covered by my husband's plan. Can I get in trouble if I do this? Tax wise it would probably be better for the employer as well right? Please no moralizing, just straight answers if you know.

Lawyer here. You are committing FRAUD.

Saying you are a lawyer is meaningless as it may not be your area of law. It is not illegal and common with bigger companies. My husband in the majority of companies he works for is offered either health care or a cash amount if we can prove we have outside coverage, which we do. Its particularly common for military retirees who get tricare. Don't speak on something you don't know about. He has either gotten it broken up in each pay check or a lump sum.

Np. You're not understanding what OP is saying. She's not being offered a cash amount.if she has her own insurance. What she's being offered is :

$X/hr OR $X/hr plus $Z specifically for health insurance (a stipend that gets treated differently tax wise).
OP is asking if she can say she's taking Z for health insurance, but actually pocketing it.

Try better reading comprehension before you get all high and mighty.

OP here and yes this poster is correct. But I didn't do it. I just asked if it was ok. Everyone says no so I'm not going to do it. Everyone happy now?

Yeah, thrilled. You sound like a real peach.