I have notified my employer, but they refuse to change this. My accountant said I will need to get a corrected W-2 that deducts the imputed value. When I brought this up to my employer, they refused to give me a corrected W-2 and said that federal law requires them to tax this benefit. However, from what I can tell, federal law very clearly states that employer provided health plans for dependents are NOT counted as taxable income. I'm not sure where to go from here.