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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28084
Experience:  Taxes, Immigration, Labor Relations
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I have a client starting a new "C" Corporation that wants to

Customer Question

I have a client starting a new "C" Corporation that wants to pay health insurance for the officers without setting up a group plan - is this possible
Submitted: 11 months ago.
Category: Tax
Expert:  Lev replied 11 months ago.

That is possible - but in this case - the cost must be reported as regular wages to the shareholder-employee.
That would be a fringe benefit to the employee and under default rule will be classified as wages.
In order to have tax favorite treatment - we need to comply with section 105 requirements.
Specifically for health insurance premiums - see IRS publication 15b

https://www.irs.gov/pub/irs-pdf/p15b.pdf

page 5 - Accident and Health Benefits.

Expert:  Lev replied 11 months ago.

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I am here to help you will all tax related issues.