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Posted by Rod on September 6, 2007, 4:10 am
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>> My company is an S Corp with 1 employee. I have taken group
>> insurance for myself and 1 employee. I was able to deduct
>> the group insurance premium as the business expenses.
>>
>> I recently found out that individual plans are very cheaper
>> then group plans.
>>
>> If I plan to take the individual plan for myself and pay my
>> premium and employee takes his individual plan and pay his
>> premium, can I pay the employee's premium to the employee
>> and claim as the business expenses??? Is it tax deductable.
>>
>> I have offered the position with the promise of paying his
>> full health insurnace benefits
> Not sure where you're getting your tax advice. If you own 5%
> or more of the Scorp, the Scorp cannot take a deduction for
> your health insurance/
The S corp can take a deduction however it is income to the
>2% shareholder in box 1 on w2 however not subject to fica
and the shareholder/employee can then take the self employed
heath insuance deductioin on from of 1040 as long as is
properly established plan
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