- 4 -
Mrs. Speltz executed three documents in 2000, an employment
contract, a salary redirection document, and a client data sheet.
The employment contract described Mr. Speltz’s job duties.
Mrs. Speltz and Mr. Speltz signed the contract. Mr. Speltz’s
duties were described as childcare, lawn care, chopping firewood,
and repairing toys and sundry items. Mr. Speltz was also
required to work an “average” of 12.5 hours weekly in return for
a medical reimbursement benefit limited to $6,500 per year.
Medical benefits, according to the contract, included
deductibles, insurance premiums, and medical costs not covered by
insurance.
The Employee Salary Redirection document provided that $542
per month would be directed to a flexible spending account on Mr.
Speltz’s behalf to pay for Mr. Speltz’s insured and uninsured
healthcare costs. Mr. Speltz signed the employee salary
redirection document as an “employee” and Mrs. Speltz as his
“employer.”
In addition, Mrs. Speltz signed a client data sheet
requiring Mr. Speltz to work a “minimum” of 12.5 hours a week and
a “minimum” of 7 months a year. The client data sheet also
stated that Mr. Speltz’s medical reimbursement was limited to
$6,500 per year.
Mrs. Speltz relied upon an Internal Revenue Service
Coordinated Issue Paper, entitled “Health Insurance Deductibility
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011