Group Health Insurance under IRS Code Section §106 is tax deduction for both employer and not income to the employee. It’s the biggest break there is in the Tax Code, even more so than Mortgage Interest.
Providing Health Insurance is a GREAT way for EmployER’s to attract and retain better, stable, dependable workers. It’s also the law for large employers (over 50 lives) to meet the mandate and for the employees in CA to meet the individual mandate.
Internal Revenue Code Section §106
This allows Employers to deduct Group Health Insurance Premiums for their employees including the owners and officers, as long as it’s a qualifying Group Health Insurance plan as a business expense.
PLUS, Employees do not have to report employer paid premiums or the benefits in their gross income!
Scroll down or look to the right of your screen for more references to prove the deduction. Health Coverage Guide *
References and Technical Links
IRS Publication — Business Expenses #535
Tax Guide to Fringe Benefits — Publication 15-B
Tax Facts: Employer Deduction — Password-Protected Tax Facts on Insurance — Employee Benefits goes into very detailed explanations. It can be purchased for $99 or check their website for a trial subscription.
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