Sole employee of Corporation and health insurance reimbursement

Forum|Forum|1 year ago
December 10, 2024
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Hi: I'm the sole employee of a my Corporation (taxation wise Not an S Corp so >2 shareholder doesn't apply).

I've read that since a C Corp with one employee is exempt from the ACA (and I have to buy individual insurance) the C corporation Can reimburse me -- owner-employee -- for the cost my of health insurance (the premiums). However, I don't know the best way to do this! I buy health insurance on my state's exchange and receive a subsidy (APTC). Can I still take this subsidy and have the Corp pay the rest of the premium directly to the insurer? Do I have to give up the APTC and have the Corp pay the entire premium directly? Or should I pay my portion of the premium minus the APTC and then have the Corp reimburse me (or the whole thing)? It's getting dicey and I'm getting very different information. Any help will be greatly appreciated!

TurboTax Business Windows

Mike9241

see this link

https://activitycovered.com/can-a-c-corp-pay-health-insurance-premiums-for-owners/

however, I don't think your C_corp is subject to the ACA since you don't have 50 full time employees.

Who Needs to be ACA Compliant?
ACA compliance primarily applies to Applicable Large Employers (ALEs), defined as businesses with 50 or more full-time equivalent employees. ALEs must:

Offer health insurance meeting ACA standards.
Report their compliance to the IRS annually.

taxesmakemyheadhurt1Author

Thanks for your reply! Yes, my Corp is not subject to the ACA which is why it is OK for me to buy an individual insurance product and have the company contribute. One question is if the corp can pay the policy directly or if I have to pay and then be reimbursed. The main question, though, is about the APTC; since I receive a subsidy is the subsidy reduced or even eliminated because the corp is paying some of the premium (as it is if you have a QSEHRA -- which I won't) because of the affordability stuff (IRS). Any help, greatly appreciated!