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

[Anonymous]

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.

[Anonymous]

No, its fine if you are covered under your husband. You don't need to take insurance from them. We don't take employer health care as we are covered under a different plan. The important thing is your are covered.

[Anonymous]

I don't think you understand my question. Is there any type of penalty if a lump sum payout is given to me on the understanding that is used for health insurance and it is NOT used for health insurance?

[Anonymous]

Anonymous wrote:I don't think you understand my question. Is there any type of penalty if a lump sum payout is given to me on the understanding that is used for health insurance and it is NOT used for health insurance?

Yes, it’s fraud...

[Anonymous]

I would explain to the family that you are covered by your husbands plan, maybe they would be willing to split the premium with you and add it to your salary.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I don't think you understand my question. Is there any type of penalty if a lump sum payout is given to me on the understanding that is used for health insurance and it is NOT used for health insurance?

Yes, it’s fraud...

Fraud how? How would it be traced?

[Anonymous]

No its not fraud and its fine. We haven't taken employer insurance in 15 years. Some employers offer more pay or other perks if you don't take their insurance. That is normal.

[Anonymous]

Are you paid on the books OP? The money is treated differently for tax purposes if it is paying for health insurance (untaxed up to about $450/month), so you can’t just take a lump sum intended for premiums and treat it like it’s part of your salary. They would need to process it as part of your salary (so that it would be taxed correctly).

[Anonymous]

My family pay for mine but its a separate check because it's not taxable. In Jan every year i show the increasee rate and they change the amount. So you would have to lie to them and its fraud.

[Anonymous]

Don’t start a new job with a lie, OP. You don’t need healthcare insurance so take the option that doesn’t offer it. If you don’t your employer will find out. Your employer wants to take a deduction on their taxes and will need proof that their money is paying for yours.

[Anonymous]

Anonymous wrote:No its not fraud and its fine. We haven't taken employer insurance in 15 years. Some employers offer more pay or other perks if you don't take their insurance. That is normal.

You don’t understand the question, PP. What OP is describing is indeed fraud as she will not be applying the money given to her by her employer for health insurance to health insurance.

It would be a huge mistake to base it on a lie, OP.

[Anonymous]

OP, you can negotiate for something in between--a salary at the midpoint and a smaller contribution to offset your costs for being on your husband's plan (assuming there is a premium for that). My employer pays a monthly benefit for opting out of health insurance. But you need to be clear with the employers about how you will use the stipend since it is taxed differently based on use, as noted.

[Anonymous]

Anonymous wrote:

Anonymous wrote:No its not fraud and its fine. We haven't taken employer insurance in 15 years. Some employers offer more pay or other perks if you don't take their insurance. That is normal.

You don’t understand the question, PP. What OP is describing is indeed fraud as she will not be applying the money given to her by her employer for health insurance to health insurance.

It would be a huge mistake to base it on a lie, OP.

No, you are not understanding the question. OP husband has health insurance for her. She is covered and does not need a second plan. Many people are covered under their spouses insurance. So, employer is giving her the choice of either they pay for health insurance for her (which she doesn't need) or give her the money they would have spent on insurance as a bump instead of paying insurance. Many employers do this. My husbands had it several times through large employers. It is very common. There is no fraud. The fraud would be if she agreed to take the money to pay for insurance and not get insurance. She is saying she does not need insurance as she is already covered so they are offering her money instead.

[Anonymous]

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.

[Anonymous]

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.