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Beware the Tax Traps of Wellness Programs

Because employee rewards under the programs are often considered nominal, many employers overlook the tax implications.

In this article, Elizabeth Drake* and Gary Quintiere discuss the potential taxes that can result from employer-provided wellness programs. While most employers understand the rules prohibiting discrimination based on age, disability and other factors, many do not realize there can be serious tax-law implications associated with the design and implementation of a workplace wellness program. The article details how differences in plan design can help mitigate an employer's potential tax liability while also providing the benefit of better health for employees, as well as reduced healthcare costs for the company.

*Former Miller & Chevalier attorney