Executive Physicals

ohio benefits manager · September 2001

My company pays for an extensive annual executive physical for officers of the company. We have partnered with a local medical facility (outside our health care plan) to perform these physicals. The bills are paid from general assets through our A/P dept. The execs are encouraged to have the exam, but it is not mandatory.

My question is: Should these expenses be as reported as w-2 earnings? (the same as perquisite reimbursements?)

Thanks in advance for your reply.

Down_the_Middle · September 2001

The fact that you pay this out of A/P makes me question why it isn't income to the exec. I used to do this in a former position, but the health plan handled most of the expenses and we reimbursed the exec for all out of pocket and non-covered expenses. This was considered deminimus income and not reported on the employees W-2.

Unless there's a payroll/tax guru out there, I'd talk to your tax advisor or payroll vendor for more info.

Bonnie Bauer · September 2001

[font size="1" color="#FF0000"]LAST EDITED ON 09-27-01 AT 11:10AM (CST)[/font][p]We recently started to do Executive Physicals. We pay for them out of a
"wellness budget" and have a $700.00 limit on the cost. Any major procedures like sigmoidoscopy and annual female checks and mammograms are excluded because they our covered under our medical plan. Our counsel stated that as long as we pay the bills and the money does not go to the Executive it does not have to be reported as income.

Executive Physicals

Comments