2023 Health Insurance for S Corporation Owners: An Update
In this article, we give you the ins and outs of what you need to do with your S corporation to ensure your health insurance deductions and also avoid the $100-a-day penalties for violating the rules of the Affordable Care Act.
The good news is that the old rules still apply.
Step 1. Get the cost of the health insurance on the S corporation’s books. You can do this in one of two ways:
1) Direct payment. The S corporation can make the premium payments directly to the insurance
company for the accident and health insurance policy that covers the owner-employee who has more
than 2 percent ownership (and his or her spouse and dependents, if applicable).
2) Reimbursement. The owner-employee who has more than 2 percent ownership can make the
premium payments to the insurance company and furnish proof of the … Read More