[IYAS9YAS]

No matter pre or post tax status, the employer giving money to defray health care costs is against the rule. At least, according to this article.

Easy way around it. If you're cutting a separate check, then stop. Bump their pay that amount. Yes, it will be taxable, but it will certainly help with the additional costs.

[ican'tbelieveit]

I am not sure it helps... if their pay goes up, their responsibility to pay for healthcare on the exchanges will also go up. Might bump them into a much more expensive bracket on the exchange. Not the same as giving them assistance.

[MortMan]

Easy way around it. If you're cutting a separate check, then stop. Bump their pay that amount. Yes, it will be taxable, but it will certainly help with the additional costs.

I wonder if the IRS has already made this against the rules. From the article, the tax status of the assistance is immaterial. Substituting a raise for X dollars for the assistance of X dollars probably raises a flag in their system.

after all, NOT violating the $10K bank transaction limit (no matter why) is enough to get you investigated and have your money seized these days.