Question

K receives certain employment benefits in addition to a salary. During the current year, her employer paid for the following benefits: Premium of $200 for group sickness and accident insurance coverage, Annual dues of $1,500 for fitness club membership for personal use, Psychologist fee of $1,100 for mental health counseling for K’s son, and Premium of $800 for a private health services plan. What amount, with respect to the benefits, is included in K’s employment income for tax purposes?

Answer 1

The following are excluded for income tax purposes:

1 . Employer paid premium for group sickness and accident insurance coverage

2. Employer paid counselling services for mental health for the employee or his relatives

3. Employer paid premium for private health insurance plan

Hence only Annual dues of $1500 paid for fitness club membership for personal use is included in K’s employment income for tax purposes.