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Employee Benefit Plan

An employee benefit plan is a plan that offers employees benefits outside their standard income. The most common benefits given through a benefit plan may include health, dental, or pension. Often times, the employer takes a cut from the employee's salary to pay towards a custodian, who is the person actually offering or managing the benefit. For example, an employer might pay a health insurance company to distribute health care benefits to its employees. Still, even though the contributions are being routed through the employer, the employee must still report any income or gains received from the benefits (total benefits - contribution). Quite commonly, an employee benefit plan is a trust, consisting of the usual trustee/beneficiary structure. Designated staff are made trustees over the employee's money, making appropriate use of that money for various forms of benefits. Whenever the employee plan is in the form of a trust, the employee (as beneficiary of that trust) is required by law to file a trust income tax return.

Fast Facts

  • an employer's employee benefit plans are audited
  • employee benefits plans count as tax deductions to the employer

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Results 1-5 of 55 for "employee benefit plan"

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