Business Deduction for Employer provided day care for S-Corp

[Rstoller]

Does anyone have any advice regarding implementing an employer provided day care fringe benefit when the only employees are the shareholders?

[TAXNJ]

See Tab 5 The Tax book and other applicable sections.

also see: https://www.hg.org/legal-articles/fringe-benefits-giving-perks-to-employees-7753

and
IRS pub 15B

[Burke]

Are both full-time salaried employees? Is the child care benefit out of proportion to both salaries? It would have to be reasonable to be tax deductible by the S-Corp, IMO.