Qualified beneficiaries are the employee, if he is terminated or his working hours have been reduced, or if the employer claims bankruptcy, and an employee's spouse or dependent children, if covered under the plan. Technically they are the employees of a corporation and are not self-employed. Health Insurance Group health insurance is usually less expensive than individual health insurance. Premiums for employees, including family members, are tax deductible business expenses. Premiums for an owner operator generally are tax deductible business expenses only for farms organized as a Subchapter C corporation.
Employees pay no tax on health insurance premiums paid by their employer.
To the extent that family members are bona fide employees, the portion of the premium which relates to their coverage is deductible. Such health insurance coverage must be an honestly negotiated transaction offered to all employees. The cost of providing medical insurance for employees is not included in their taxable income. Income, social security and unemployment taxes are not due on employee compensation in the form of medical insurance. Group Term Life Insurance 4 Term life insurance helps the employer express to employees how valuable they are to the business.