We have a high deductible group health plan (BCBS). Employer also pays for out of pocket medical reimbursements (deductibles). Employee does not pay into a fund for these reimbursements. For the first two years of a three year contract, these reimbursements were paid out at the full amount of the expense. This year, a new office assistant took taxes out of the reimbursement. Did something in the tax laws change or did she do this incorrectly?
