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ARTICLE · 21 NOVEMBER 2011

Employee Benefits Update - November 2011

Retroactive to January 1, 2011, group health plan sponsors do not have to impute income and withhold taxes on employer-paid health coverage for adult dependent children through December 31 of the year in which the child turns age 26.

United StatesEmployment and HR
The Labor & Employment Law Group
The Labor & Employment Law Group
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SELECT COMPLIANCE DEADLINES AND REMINDERS

Wisconsin Legislature Passes Bill to Conform to Tax Law

Retroactive to January 1, 2011, group health plan sponsors do not have to impute income and withhold taxes on employer-paid health coverage for adult dependent children through December 31 of the year in which the child turns age 26.

However, if the plan covers an adult child who will be age 27 or older by December 31 (generally insured plans), you may still have to impute income and withhold both federal and Wisconsin income taxes on the value of their employer-paid coverage. A full article describing the bill and its effects is included below under Health and Welfare Plan Developments.

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