Employment Law Blog

News, trends and analysis in employment law and HR

May 20, 2011

OREGON: Adult child health coverage tax-free

Employee Benefits 

If you have employees who cover their non-dependent adult children on your health insurance program, that coverage is now tax-free at the state level, thanks to legislation signed into law on March 9, 2011 (SB 301, Ch. 7, 2011 Laws). As of December 31, 2010, Oregon tax law regarding adult child coverage up to age 26 is in sync with the federal Internal Revenue Code, which means that the value of the adult child’s coverage is now excluded from state income tax. Contact your payroll or tax adviser with questions.