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[quote=Anonymous][quote=Anonymous]I have found that reimbursing our long-time nanny up to a fixed amount (we now do $600) towards her monthly health, dental and vision insurance premiums is the best way to handle this benefit. That allows her to pick the plan(s) she wants without us getting involved in the details. We steer clear of any problems she might encounter with a particular insurer or plan but provide a valuable, non-taxable benefit. Every month she gives me copies of her premium payments and I issue electronic reimbursements to her account up to $600. [/quote]

Careful, starting in 2017 there is a limit on the tax free monthly benefit for health insurance AND you have to report what you gave her on her W-2 form. It isn't taxed, it just impacts her subsidy on her tax return.

The reimbursements cannot exceed $4950/year for single coverage or $10,000/year for family coverage, adjusted for inflation. The amount must be prorated to reflect any partial year coverage.
Note: if the employer wants to give more than $4950/$10,000, it must do so as taxable, unrestricted cash. Otherwise, the excess amounts will be considered to be a “group health plan” that does not comply with the ACA’s insurance mandates.
https://www.employmentmattersblog.com/2017/03/qsehra-the-21st-century-cures-act-creates-a-new-health-care-plan-option-for-small-employers/

And this http://info.homeworksolutions.com/blog/how-to-setup-a-qsehra-for-your-nanny-health-insurance[/quote]

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