Employee Insurance Reimbursement

[TaxmannEA]

I'm totally stumped by this one. It was dropped on me by a co-worker in this office.  Employer pays insurance for his employees as a benefit. If the employee's  spouse wants coverage, a deduction is made from employee pay for the additional premium. We now find out that one spouse's employer has been reimbursing her for the insurance paid by her husband by our employer. Spouse's employer wants to directly pay husband's employer for this premium and not route it through the spouse's check. I tend to feel that this is an attempt by spouse's employer to avoid showing the reimbursement on her pay or something like that. I'm leaning heavily towards the opinion that this is not allowable. Any thoughts on this?

[ILLMAS]

Is the reimbursement to the spouse part of wages?  If no, then her employer is breaking ACA rules which have a hefty penalty.  Even if the employer of spouse reimburses the husband employer, they are still breaking the ACA rules because it seems they are purposely avoiding coverage.

 

MAS

[TaxmannEA]

That's my take on this also. I have no information on the spouse as we don't work with that employer. Thanks for the confirmation. .