An employer, that is a S Corporation, is allowed to deduct employer contributions for health insurance for employees. The employer cannot deduct health insurance premiums for stockholders that own more than 5% of the stock in the corporation.
Stockholders health insurance premiums are passed over to the individual stockholders and taken as a direct tax deduction on the 1040 form.
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Stockholders health insurance premiums are passed over to the individual stockholders and taken as a direct tax deduction on the 1040 form.
The net effect is the same.