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Compliance October 19, 2011
WI Senate Passes Bill on Adult Child Health Care Coverage Taxes
October 19, 2011 (PLANSPONSOR.com) - The Wisconsin Senate has passed legislation that would enable employers to offer coverage to employees' adult children up to age 26 without employees being taxed on the coverage.
Reported by Rebecca Moore
Business Insurance reports that the measure, S.B. 203, would conform Wisconsin tax law to the federal health care reform law, which requires such an extension of coverage to employees’ children up to age 26. Subsequent Internal Revenue Service rules said the coverage can be extended on a tax-free basis through the end of the year in which the child turns 26.
Business Insurance said that currently, Wisconsin is the only state that has not conformed its tax law to federal tax law on the extension of coverage to employees’ adult children.
More than a dozen states have changed their laws since the start of the year (seeVT Lawmakers Approve Tax Conformity to PPACA). The remaining states either automatically conform their tax laws any time federal tax law changes or do not impose income taxes, according to the news report.« Net 401(k) Participant Transfers Almost Neutral in September