payroll deduction insurance

  • Individual insurance (as distinguished from group insurance) issued to employees of a common employer. Premiums are collected from the employer, who in turn deducts them from the employees’ salaries.

    Internal Revenue Service 1

1Internal Revenue Service, Internal Revenue Manual 4.42.6 Glossary, http://­www.irs.gov/­irm/­part4/­irm_04-042-006.html (last accessed Dec. 22, 2009).