Unformatted text preview: employers this cost is completely tax deductible. – If you were to receive the money in cash and then bought your insurance you would be taxed on that amount as income. Example: Health Insurance costs $350.00 per month.
– For Individuals in 15% tax bracket: If you received the money you would be expected to pay a tax of: 0.15 x $350 = $52.50 Employer Based Insurance Favors Those with Higher Incomes Employer Based Insurance Favors Those with Higher Incomes Example: Health Insurance costs $350.00 per month.
– For Individuals in 33% tax bracket: If they received the money they would be expected to pay a tax of: 0.33 x $350 = $115.50 By receiving the health insurance as a benefit paid for by the employer, the higher income individual benefits from not having to pay taxes on the amount of money used to pay for insurance. Employer Based Insurance...
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This note was uploaded on 02/28/2010 for the course HP 200 taught by Professor Roybal during the Fall '05 term at USC.
- Fall '05