Notice 2015-36

IRS Notice 2015-36 clarifies how certain employer-provided wellness programs that involve health-contingent rewards or penalties should be treated for tax purposes. It explains when these program rewards are considered taxable income and how they impact health plan affordability and compliance with Affordable Care Act rules. Essentially, it guides employers and employees on the tax implications of wellness incentives, ensuring proper reporting and compliance when such programs are used to promote healthier behaviors while adhering to legal and tax standards.