Employers who downloaded IRS Publication 15-B, Employer's Tax Guide to Fringe Benefits, before May 27, 2011, should note the following revision to the publication:
* On page 6 (previously page 7), under Accident or health plan, the first sentence has been changed to read as follows: “This is an arrangement that provides benefits for your employees, their spouses, their dependents, and their children (under age 27) in the event of personal injury or sickness.”
Prior to the revision, the first sentence read as follows: “This is an arrangement that provides benefits for your employees, their spouses, and their dependents (under age 27) in the event of personal injury or sickness.”
The revision takes into account legislation in the Health Care and Education Reconciliation Act of 2010 (P.L. 111-152) that amended Code Sec. 105(b), effective March 30, 2010, to extend the gross income exclusion for medical care reimbursements under an employer-provided accident or health plan to include reimbursements for an employee's child who has not attained age 27 as of the end of the tax year. Prior to the above legislation, an employee wouldn't have received these benefits unless the child was the employee's dependent.
IRS Publication 15-B contains detailed information on the employment tax treatment of various fringe benefits, including accident and health benefits, employee stock options plans, health savings accounts, meals and lodging expenses, moving expense reimbursements, and transportation (commuting) benefits [IRS website, Forms and Publications, Changes to Current Tax Products, Correction to Publication 15-B, Employer's Tax Guide to Fringe Benefits (For use in 2011), 6/13/11].