HR Management & Compliance

Workplace Wellness: Proposed Tax Credit for Wellness Programs

Legislation has been proposed in the U.S. Senate that would create a tax credit for employers that offer comprehensive wellness programs. The Healthy Workforce Act (S.B. 1753), authored by Senators Tom Harkin (D-IA) and Gordon Smith (R-OR), would provide a tax credit of up to $200 per employee for the first 200 employees, and up to $100 per employee thereafter. The credit would be available to an eligible employer for 10 years.


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Businesses whose employee wellness programs include at least three of the following components would qualify for the credit:

  1. Health awareness programs that include education and health risk assessment programs.
  2. An employee engagement component that establishes a committee to engage employees in worksite wellness programs through worksite assessments and program planning, delivery, evaluation, and improvement efforts, and that tracks employee participation.
  3. A behavioral change component that provides for altering employee lifestyles to encourage healthy living through counseling, seminars, online programs, or self-help materials that provide technical assistance and problem-solving skills.
  4. A supportive environment component.

We’ll keep you posted on the status of this legislation.

Additional Resources:

S.B. 1753, from the Library of Congress

Health Benefits: New HIPAA Nondiscrimination Rules for Wellness Programs

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