Health insurance for board member

[Guest Christie Banks]

If a company pays for health insurance for a board member (not part of a group plan), can they deduct it as an insurance expense the same as for other employees, or must it be 1099'd to the board member as income?

[Guest Broot]

We've done this for many years, and the direction of our tax department is that the value of the benefit (either the premium for an insured plan or the actuarial value for a self-insured plan) must be reported to the IRS on a 1099 for the director.