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I have a client starting a new "C" Corporation that wants to

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pay health insurance for the...
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: 2 years ago.Category: Tax
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Answered in 20 minutes by:
12/14/2015
Tax Professional: Lev, Tax Advisor replied 2 years ago
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 30,621
Experience: Taxes, Immigration, Labor Relations
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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.

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Tax Professional: Lev, Tax Advisor replied 2 years ago

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If you still have any doubts, need clarification - please be sure to ask.
I am here to help you will all tax related issues.

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