This is the second part of a two part series. Click here to read Tax Free, Part 1.

HE SAYS:

Your employer can also be of help in lowering your tax burden.   Instead of a raise, your employer can compensate you in ways that are tax free.

Health insurance premiums paid by your employer are tax free to you and deductible as a business expense for your employer.   In addition, you are both free of the 7.65% payroll tax on this income.

Group term life insurance coverage of $50,000 or less paid by your employer is tax free income to you and deductible by your employer.

Your employer can pay, and deduct, as much as $5,250 per year in education assistance for either undergraduate or graduate course all tax free to you.  The courses do not even need to be job related.

Your employer can provide you with up to $230 per month in discounted passes or tokens for public transportation tax free to you and deductible by your employer.

Under a written plan (Flexible Spending Accounts), your employer can make deductible contributions for such benefits as group life insurance, disability benefits, dependent care and/or accident and health benefits all tax free to you.

As you can see, it is a good idea to consult with a knowledgeable Accountant to fully understand your income tax obligations.

WHAT DO YOU SAY?