I work for a non-profit company who administers health insurance and wellness programs. The wellness programs offer cash incentives to all members (external and internal) for exercising, health education programs, completing a health survey etc. In the last paycheck of the year my employer includes the total amount of wellness incentives paid to the employees throughout the year and we are taxed on those amounts. The wellness programs are a result of our insurance benefit and they are not a "company" benefit as they are not listed or mentioned in the employee handbook. Therefore, should the employees be taxed on those wellness incentives? The external members who receive the same benefit do not get taxed, but we as internal members (because we work for the company that administers these programs) are taxed. Please offer some insight to this issue as it is the second year in a row that this has occurred. Thank you so much!