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>>employer paid plans are subsidized by the employer, who uses them as a tax write off, Calling them a 'tax write-off' makes it sound like something sinister i
by ejb999 5y ago
>>employer paid plans are subsidized by the employer, who uses them as a tax write off,
Calling them a 'tax write-off' makes it sound like something sinister is going on - just about everything a business pays to run their business is deductible, and thus a 'tax write-off'.
Do we call buying paper for the xerox machine a 'tax write-off' and thats the only reason business buy paper?
Its a cost of doing business - just like rent, payroll, heat, electricity etc - there is no special 'write-off' for providing health insurance for a typical company.
- dangrossman 5y agoMentioning that they're a tax write-off goes towards explaining why employer-subsidized plans can be cheaper than purchasing your own plan: the employer is buying it with pre-tax dollars, where an employee can only buy that plan with post-tax dollars.