Payments by an employer or a third party for medical and hospital expenses because of sickness or disability of the employee and dependents are not wages when paid under a plan or system.

Employer payments for insurance, annuities, or payments into a fund, which would then pay for medical and hospital expenses, are not wages when paid under the plan or system.

Payments for expenses not paid under a plan are wages when paid during the first six months following the month the employee last worked. Payments for expenses after six months are not wages.