Question

Officer Comp for sole owner/employee of C Corp: Life insurance & HSA paid on behalf

Forum|Forum|2 years ago
February 5, 2024
1 reply
0 views

Will the amount paid for Life insurance still need to be part of the wages and taxable since there are no other employees or can not it an employee benefit?

Also, an HSA (with a plan designated to do so) being the only employee, can the HSA can still be an employee benefit, without taxed to the sole owner/employee?

Thank you

@CCorp

@employeelifeinsurance

@Soleowner

TurboTax Business Windows

R

RobertB4444

You can create employee benefits for your sole-proprietorship at any point by documenting that the benefits are available to all employees. Health insurance has to be treated as self-employed health insurance, however, which means it is deducted for purposes of income tax but is still subject to self-employment tax.

@Ckb55

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"