Overview
Steptoe partners Scott Sinder and Caitlin Tharp and associate Nick Sutter authored the article “'Wellness' Doesn’t Come Tax-Free" for the April 2026 issue of Leader's Edge Magazine. The article warns employers about using fixed‑indemnity "wellness" plans that claim to generate payroll tax savings by replacing taxable wages with tax‑free cash benefits. IRS and Treasury guidance makes clear that these plans generally fail because the fixed "wellness" payments are not tied to substantiated medical expenses and are therefore treated as taxable wages. Employers adopting these arrangements risk back taxes, penalties, and interest, and should view promises of sizable tax savings, claims of IRS approval, or promoter‑provided legal opinions as red flags and seek independent legal and tax advice.
Read the full article in Leader's Edge Magazine.
