Question

When employers pay for health insurance as part of the total compensation package provided to its...

When employers pay for health insurance as part of the total compensation package provided to its employees; who really pays—employers, employees, taxpayers? Explain.

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Answer #1

Answer:
When employers pay for health insurance as part of the total compensation its been paid via tax payers mostly because of following reasons:

  • The premium paid by the employer is before tax business expense and hence can be deducted from the profit before employer pay the tax to the government.
  • Its a tax free benifits for the employee.
  • So this amount is indirectly being paid by the tax payers


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