"C" Corp. Shareholder/Employee Health Insurance

[Tony]

A majority shareholder works 15 hours per week for a profitable "C" Corp. as an employee. The shareholder receives no wages (shareholder's decision). The "C" Corp. pays for the shareholder/employee health insurance. There are no discrimination issues as other employees also receive health insurance.

Can the corporation deduct the health insurance or is the health insurance considered a dividend to the shareholder since the shareholder receives no wages?

Thanks,

Tony

[Jiggers]

Why no wages?

A majority shareholder works 15 hours per week for a profitable "C" Corp. as an employee. The shareholder receives no wages (shareholder's decision). The "C" Corp. pays for the shareholder/employee health insurance. There are no discrimination issues as other employees also receive health insurance.

Can the corporation deduct the health insurance or is the health insurance considered a dividend to the shareholder since the shareholder receives no wages?

Thanks,

Tony

Why are no wages paid to him?

To be considered an employee, with benefits, he has to receive a paycheck.

No check, no insurance.

[luke]

I agree

with Jiggers!