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Level 1
December 7, 2019
Solved

Can C corp deduct 100%of group health insurance premiums for officers/shareholders if it offers it to all employees but it does charge other employees for their premiums?

  • December 7, 2019
  • 2 replies
  • 24 views
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Best answer by qbteachmt

I see two parts to this.

1. The tax reporting for amounts the business pays. Obviously, charging the other employees creates a Net expense for the business.

2. Does it meet the requirements to offer this as differential treatment is a Benefit Management issue, not a tax issue. Health insurance plans and their management must meet ACA guidelines and favorable treatment is often a problem.

2 replies

Accountant-Man
Level 13
December 7, 2019
It offers it to all, but gives it free to officers/owners and charges other employees? Is that legal?
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qbteachmt
qbteachmtAnswer
Level 15
December 7, 2019

I see two parts to this.

1. The tax reporting for amounts the business pays. Obviously, charging the other employees creates a Net expense for the business.

2. Does it meet the requirements to offer this as differential treatment is a Benefit Management issue, not a tax issue. Health insurance plans and their management must meet ACA guidelines and favorable treatment is often a problem.

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sjrcpa
Level 15
December 7, 2019
Group health premiums for C Corp shareholders are not taxable to them. They are only taxable to S Corp shareholders and Partners/LLC Members.
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