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Taxability of the $250 Wellness Benefit

The $250 wellness benefit for eligible employees and their covered spouses participating in the NDPERS group health insurance plan is taxableThe payroll and human resources’ department in your organization must communicate directly with the employees to explain how taxes are withheld from their paychecks.

When and how is an employee taxed on the wellness benefit?

Sanford Health Plan sends individual employee redemption information to your agency payroll department for processing.

  • Employees are only taxed on the amount of the wellness benefit that has been redeemed through the fitness center reimbursement or online redemption center
  • Redemptions and reimbursements by spouses of the wellness benefit will also be taxed on the employee's paycheck
  • If employees have questions on the amount of wellness benefit that they or their spouse has earned or how to redeem their wellness benefit please encourage them to contact Sanford Health Plan at (844)-742-0014 or NDPERSwellness@sanfordhealthplan.com