1.001 -Exemption of Premiums on Accident and Accidental Death Insurance

Item	Description	FY2014	FY2015	FY2016	FY2017	FY2018
1.001	Exemption of Premiums on Accident and Accidental Death Insurance ¹ Employer contributions for premiums on accident and accidental death insurance are not included in the income of the employee and are deductible by the employer Origin: IRC § 106 Estimate: $28.6	25.2	26.2	26.5	27.5	28.6

Key:

ORIGIN
IRC	Federal Internal Revenue Code (26 U.S.C.)
U.S.C	United States Code
M.G.L.	Massachusetts General Laws
Rev. Rul.; C.B.	Revenue Ruling; Cumulative Bulletin of the U.S. Treasury
ESTIMATES	All estimates are in $ millions.

Footnote:

¹ 1 This item and others citing this endnote cover employee fringe benefits. We accept as standard the following treatment of these benefits: the expense incurred by the employer in providing the benefit is properly deductible as a business expense and the benefit is taxed as compensation to the employee as if the employee had received taxable compensation and then used it to purchase the benefit. Of course, there are problems with this analysis. In some cases, the "benefit" is more a condition of employment than a true benefit. For example, a teacher required to have lunch in the school cafeteria may prefer to eat elsewhere even if the school lunch is free. On the other hand, in many cases the provision of tax-free employee benefits is clearly a substitution for taxable compensation.