A part of the PPACA (ObamaCare) provides that parents may add children to their employer-sponsored coverage plan up to age 26, whether a dependent student or not.
Turns out California's tax law requires the state to levy taxes on any amount of premium paid by the employer for non-dependent children of employees.
Many California workers added non-dependent children under age 26 to their group health plans in favor of paying premiums for the coverage. According the the Sacramento Bee article, the result is a bump in taxable income to reflect the employer's contribution.
See the article here.
Showing posts with label tax. Show all posts
Showing posts with label tax. Show all posts
California's Hidden Non-Dependent Tax On Health Premiums
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