|
|
Sole Proprietorship |
C Corporation |
S Corporation |
Partnership |
LLC |
|
Tax treatment of
premiums paid
for employees
|
Fully deductible
to entity, not
taxable to employee |
Fully deductible
to entity,
not taxable
to employee |
Fully deductible
to entity, not taxable to
employee |
Fully deductible
to entity, not
taxable to
employee |
Fully deductible
to entity,
not taxable
to employee |
|
Tax treatment of
premiums paid for
owner/employees
|
Eligible premium
deductible above
the
line |
Fully deductible
to entity,
not taxable
to employee |
>2% of owner –
eligible premium
deductible above
the
line*; all others
fully
deductible to entity,
not
taxable to employee |
Eligible premium
deductible above
the line* |
Eligible premium
deductible above
the line* |
|
Premium paid by |
Sole Proprietor |
Corporation |
Corporation |
Partnership |
LLC |
|
Reported as income
to
employee/owner
|
N/A |
N/A |
W-2 wages to >2%
owner |
Schedule
K-1,
guaranteed income |
Reporting depends
on
whether elected Corp.
or
Partnership status |
|
Tax treatment of
premiums paid for
employee’s
spouse
|
Fully deductible
to entity, not
taxable to
employee |
Fully deductible
to entity, not
taxable to
employee |
Fully deductible
to entity, not
taxable to
employee |
Fully deductible
to entity, not
taxable to
employee |
Fully deductible
to entity,
not taxable
to employee |
|
Tax treatment of
premiums paid for
spouse as a
dependent of
owner/employee |
Eligible premium
deductible above
the line* |
Fully deductible
to entity, not
taxable
to employee |
>2% of owner –
eligible premium
deductible above
the
line*; all others
fully
deductible to entity,
not
taxable to employee |
Eligible premium
deductible above
the line* |
Eligible premium
deductible above
the line* |
|
|
|
|
|
|
|
