Although there is no law that prevents you from doing this, you are probably opening a can of worms. If you have other employees that are not enrolled on your group plan, you would probably want to open up this agreement collectively. You should discuss this with a tax accountant, as it will not be considered a health insurance expense, but a payroll or bonus epense and will be subject to social security and Medicare deductions. You could get around this by giving this employee a pay increase, but then you run the risk of that employee still opting to stay on your group plan. Does your company pay 100% of the dependent's premium? If not, it would make no sense for this employee to add his wife to your group plan, when she is already insured by her employer. - Friday, December 18, 2009 @ 11:58 am
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