Guest fender5150 Posted April 15, 2009 Share Posted April 15, 2009 If a C-corp has one employee (the owner), can his Health Insurance be paid 100% by the company (and deducted by the company)? I just picked up a client who has been doing this for years. Link to comment Share on other sites More sharing options...
jpod Posted April 15, 2009 Share Posted April 15, 2009 Of course. Why not? Now, whether it is tax-free to the individual under Section 106 is another story. Link to comment Share on other sites More sharing options...
Guest fender5150 Posted April 15, 2009 Share Posted April 15, 2009 Come again! Link to comment Share on other sites More sharing options...
jpod Posted April 15, 2009 Share Posted April 15, 2009 You need to work through the rules in the regulations under 106 (and 105) and conclude that the payment of the premiums on the employee's behalf is not taxable under those rules. Otherwise, it's taxable wages. Completely separate issue from whether it's deductible by the employer. Link to comment Share on other sites More sharing options...
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