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Accounting, Payroll & Pension Issues/Reimburse employees Out of pocket cost - flu shot-Taxable?

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Expert: - 12/21/2011


Question
This question was ask back in 2009 however has anything changed with the recent updates.

"If an employer decides to reimburse employees the out of pocket cost to get the flu shot (not covered by insurance)is such reimbursement considered taxable?

Answer
This may be a moot point as under Obamacare the flu shot must be covered by insurance. It is a small amount you can get them at any Walgreen's or drug store now for 15 or 20 dollars. Since it is such a small amount for each employee if the company does decide to reimburse it would be a diminis and I would code it under healthcare and not tax it.

Shirley

Accounting, Payroll & Pension Issues

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Shirley McAllister, CPP, PHR

Expertise

I can answer payroll questions, payroll tax questions, 401K questions. No stock option questions please and I have some knowledge of other pensions but am most familiar with the 401K pension. I can answer U.S.and Canada payroll questions proficiently and have a good general knowledge of UK and South Africa and some knowledge of Australia and New Zealand Payroll procedures. Please do not ask me homework questions I do not have time to answer them.

Experience

25 years with an international company in the Human Resources, Payroll and Payroll Tax areas.

Organizations
SHRM, APA, I.O.M.A.

Publications
I.O.M.A. and BNA

Education/Credentials
P.H.R., C.P.P., Canadian Payroll Administrator, Successfully passed APA class on UK Payroll Administration. Boise State University Human Resource Certification

Awards and Honors
APA Hotline Citation of Merit for last 8 years.

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