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| | {{ForumReplyPost|UserID=Scottcpa|Date=19 June 2009|Text=Take a look at establishing a MERP - Medical Expense Reimbursement Plan. That should solidify the deduction but also brings some nondiscrimination rules to play. Search the articles on this site with "Medical Expense Reimbursement Plan." | | {{ForumReplyPost|UserID=Scottcpa|Date=19 June 2009|Text=Take a look at establishing a MERP - Medical Expense Reimbursement Plan. That should solidify the deduction but also brings some nondiscrimination rules to play. Search the articles on this site with "Medical Expense Reimbursement Plan." |
| | }} | | }} |
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| | + | {{ForumReplyPost|UserID=LJACPA|Date=19 June 2009|Text=Would someone please confirm (or refute) this. An HRA is not necessary to do this. A simple document stating the provisions of the plan and proof of insurance and premiums is all that is needed to allow a deduction (employee benefit, yes) to the employer and no income to the employee. The employee can be reimbursed directly and a check does not have to go directly to the insurance company. I know there are certain limitations and restrictions on this (e.g. S corp shareholders), which can be addressed in the plan document. Right? Wrong? Thank you.}} |
Revision as of 13:11, 19 June 2009
Discussion Forum Index --> Tax Questions --> Can a corporation deduct as medical expense the reimbursement of employees individual medical insurance premiums?
ArtLander (talk|edits) said:
| 24 January 2007
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| My client's employees all have their own individual health insurance plans (not thrue the company). Can the company reimburse the employees for their individual premiums and take a tax deduction?
Thanks
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LH2004 (talk|edits) said:
| 24 January 2007
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| Of course, as long as it doesn't result in excessive compensation issues, or in the unlikely event a salary needs to be capitalized. (Were you meaning to ask about the treatment of the employees if the employer does this?)
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JR1 (talk|edits) said:
| January 24, 2007
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| Yes, but I'd call it an employee benefit program rather than medical expense.
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Dsglouise (talk|edits) said:
| 20 May 2009
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| Just want to thank you guys again. Your comments are great source of information.
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AEM CPA (talk|edits) said:
| 20 May 2009
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| Of course, the employee could only count the net unreimbursed amount toward Schedule A medical deductions.
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Bbowers (talk|edits) said:
| 17 June 2009
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| I would suggest they set up a HRA. It documents what the reimbursement is & how it is handled. Without the plan I would not recommend just reimbursing the employees as it could be considered income.
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Blrgcpa (talk|edits) said:
| 18 June 2009
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| I'd suggest that the client make the check payable to the health ins co instead of the employee.
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Scottcpa (talk|edits) said:
| 19 June 2009
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| Take a look at establishing a MERP - Medical Expense Reimbursement Plan. That should solidify the deduction but also brings some nondiscrimination rules to play. Search the articles on this site with "Medical Expense Reimbursement Plan."
|
LJACPA (talk|edits) said:
| 19 June 2009
|
| Would someone please confirm (or refute) this. An HRA is not necessary to do this. A simple document stating the provisions of the plan and proof of insurance and premiums is all that is needed to allow a deduction (employee benefit, yes) to the employer and no income to the employee. The employee can be reimbursed directly and a check does not have to go directly to the insurance company. I know there are certain limitations and restrictions on this (e.g. S corp shareholders), which can be addressed in the plan document. Right? Wrong? Thank you.
|
