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Level 2
December 7, 2019
Solved

Health insurance discrimination rules for an S-Corporation

  • December 7, 2019
  • 2 replies
  • 22 views

I am a more than 2% S/H in an S-Corp.  My wife and I are employees of the company and we have one other employee.  We are providing health insurance to every person. Can I pay 100% of the health insurance for myself & my wife and only 50% of my other employee?

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Best answer by Accountant-Man

No

2 replies

Accountant-Man
Level 13
December 7, 2019

No

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qbteachmt
Level 15
December 7, 2019

Since your share is taxable, anyway, you can certainly increase your gross pay to cover that difference and any other personal reason you want more money.

Employee (wife) falls under the same rule as that other employee, if the Shares owned by you are not deemed to be owned by her at all.

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