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3 Replies Last post: Jan 31, 2008 4:12 PM by LUCKIEST

Can I reimburse healthcare costs to E'ee?

Jan 31, 2008 2:04 PM

dcart2007 4 posts since
Jan 31, 2008

I have a small business in NJ with only 1 employee. I don't work there full time so we didn't qualify for a group health insurance. My employee got an individual policy. I want to reimburse her the cost of the premiums. What do I need to do so that I can deduct that cost on the company's income tax?

Thank you for your help.

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Ed O'Gee 215 posts since
Oct 25, 2007

1. Re: Can I reimburse healthcare costs to E'ee? Jan 31, 2008 2:50 PM

dcart2007 Welcome to the board. Certainly, confirm with your accountant but if you reimburse your employee with a payroll distribution. (i.e add $100 a week to the gross amount of her salary) you should be have no problem writing this off, as it will be included in your salary costs.

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dcart2007 4 posts since
Jan 31, 2008

2. Re: Can I reimburse healthcare costs to E'ee? Jan 31, 2008 3:07 PM

I forgot to add: I would like to reimbourse the E'ee the cost of his individual health policy but so that he doesn't have to pay tax on the reimbursement and it's tax deductible for the business too.

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LUCKIEST 7,938 posts since
Aug 6, 2007

3. Re: Can I reimburse healthcare costs to E'ee? Jan 31, 2008 4:12 PM

in response to: dcart2007

2007, Why not keep it simple. Instead of reimbursing the cost of the heath insurance, let the business
write out the check for the insurance. Much cleaner and you get the tax deduction.
LUCKIEST

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ForumsEmployee Benefits and Retirement Planning

This Question is Possibly Answered

Can I reimburse healthcare costs to E'ee?

Jan 31, 2008 2:04 PM

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