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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29579
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: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year 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

page 5 - Accident and Health Benefits.

Expert:  Lev replied 1 year ago.

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