Taxable income - send ‘em all a W-4.
Medical expenses are tax deductible, and medical benefits unless at the platinum or “Cadillac” level are not taxable income. They are offering reimbursement on medical and travel expenses not a bulk payout. So it will be a dollar for dollar accountability via receipts. The medical expenses will absolutely hold up under the IRS exemptions for medical. The travel would have to be put on a expense schedule depending on the workers tax bracket the liability on that will be minimal and likely itemized deduction. I don’t see how a reimbursement program can be discriminatory since a male employees dependent or spouse who gets pregnant will have access to the same reimbursement program.