We previously discussed the Wisconsin Legislature’s passage of a bill to adopt the federal tax treatment of employer-provided health coverage of non-tax-dependent adult children for Wisconsin state purposes, effective for taxable years beginning on January 1, 2011.
Last Friday, November 4th, Governor Scott Walker signed the bill into law. However, in Wisconsin, most laws do not take effect until the day following the date of publication of the law, which must be within 10 working days of the date of enactment (i.e., the date the bill is signed). The date of publication is expected to be no later than November 18th, so the law is expected to take effect shortly thereafter.
Wisconsin is the last state in the country to conform its state tax treatment of such coverage with federal tax treatment, which means that once this law takes effect, employers will no longer need to worry about imputing income for the value of such coverage to employees in any state.