In this video, we’ll go over what S-corp owners must do to receive health insurance, how to make tax deductions, and how an HRA affects eligibility.
Choosing an S-corporation to form your business comes with several impressive tax advantages. You don’t pay corporate income tax, and your social security and Medicare taxes are lower. In fact, profits are allocated to shareholders and taxed at that point.
However, an S-corporation’s health insurance can be a tricky matter. While S-corp employees can claim employee health insurance as a tax-free benefit, shareholders who own more than 2% of the company stock don’t get this same perk. For these individuals, tax-advantaged health insurance is more complicated.
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