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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29774
Experience:  Taxes, Immigration, Labor Relations
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Employer pays 100% medical insurance premiums employees.

Customer Question

employer pays 100% medical insurance premiums for his employees. Are they deductible?
Submitted: 2 years ago.
Category: Tax
Expert:  Lev replied 2 years ago.
Yes - deductible - that woudl be considered fringe benefits - compensation for services - and deductible as business expense.Regarding including into taxable wages - See IRS publication 15 - page 39http://www.irs.gov/pub/irs-pdf/p15.pdfInsurance for employees:Accident and health insurance premiums under a plan or system for employees and their dependents generally or for a class or classes of employees and their dependents..So as long as if premiums under a plan or system for employees - then - yes - deducted.If NOT paid under the employer's established plan - not deducted from wages.Please be aware - there might be different treatment for employees who are - shareholders.
Expert:  Lev replied 2 years ago.
Yes - these are deductible - that would be considered fringe benefits for employees - compensation for services - and deductible as business expense.Regarding including into taxable wages - See IRS publication 15 - page 39http://www.irs.gov/pub/irs-pdf/p15.pdfInsurance for employees:Accident and health insurance premiums under a plan or system for employees and their dependents generally or for a class or classes of employees and their dependents..So as long as if premiums under a plan or system for employees - then - yes - deducted.If NOT paid under the employer's established plan - not deducted from wages.Please be aware - there might be different treatment for employees who are - shareholders. Under some circumstances - such employees are treated differently. Let me know if that is a case in your situation.