S corporations- Health Insurance.

[caryn22359]

I own a small business.( S corporation)

I have 25 employees. 1/2 of the employees have medicaid or a goverment health plan.

I want to cover only the employees that do not have any health coverage?.

1. Can I have a health insurance plan that covers employees under the age of 65. If they are 65 or older they have medicaid.

Would this be discrimantory?

2. Can I have a cafeteria plan for my employees if my business is an S corporation?

[Guest John14]

Easiest answer is depending on your jurisdiction. Some States will allow the plan sponsor (you) to exclude employees with other insurance - but some do not. Same with age 65.

Need to check what the contracts are for your State. May be some variability among carriers also.

Yes, a cafeteria plan is an option for you. Only exclusion are the owners and owners' immediate family members.

[MARYMM]

Easiest answer is depending on your jurisdiction. Some States will allow the plan sponsor (you) to exclude employees with other insurance - but some do not. Same with age 65.

Need to check what the contracts are for your State. May be some variability among carriers also.

Yes, a cafeteria plan is an option for you. Only exclusion are the owners and owners' immediate family members.

Won't she also run afoul of TEFRA by not offering health insurance to actively employeds over 65 ?

[Chaz]

I think that you mean Medicare when you say "If they are 65 or older they have medicaid."

The Medicare Secondary Payor rules prohibit you from taking into account Medicare entitlement for purposes of group health plan eligibility.

You should speak to your counsel on the best way to provide health coverage without violating the law.

[Guest John14]

Yes, my mistake. Retirees may be excluded if the contract allows, but not age 65+.

[Guest sniffles]

Easiest answer is depending on your jurisdiction. Some States will allow the plan sponsor (you) to exclude employees with other insurance - but some do not. Same with age 65.

Need to check what the contracts are for your State. May be some variability among carriers also.

Yes, a cafeteria plan is an option for you. Only exclusion are the owners and owners' immediate family members.

What that means is that your owner's health insurance election would not be pre-tax, it would be taxed and you would write it off on your personal taxes at the end of the year.

[Guest John14]

Not only are the owner's contribution deducted from payroll with after tax dollars, the company's contribution has to be added back to the owner as imputed income on his/her W-2. Almost every group I get engaged with does this wrong.

[Guest sniffles]

Not only are the owner's contribution deducted from payroll with after tax dollars, the company's contribution has to be added back to the owner as imputed income on his/her W-2. Almost every group I get engaged with does this wrong.

True. We do this every year.

[Guest John14]

Then, if your company had group disability insurance, the owners should have a gross-up contract since he/she/they should be paying taxes on their portion of the premium.

[Guest odessa477]

I own a small business.( S corporation)

I have 25 employees. 1/2 of the employees have medicaid or a goverment health plan.

I want to cover only the employees that do not have any health coverage?.

1. Can I have a health insurance plan that covers employees under the age of 65. If they are 65 or older they have medicaid.

Would this be discrimantory?

2. Can I have a cafeteria plan for my employees if my business is an S corporation?

Yes, people who are under 65 qualifies for health insurance program too.