Is Health Insurance Deductible For An S Corp? 
An employer , that is a S Corporation , is allowed to deduct employer contributions for health insurance for employees . The employer can not 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 . The net effect is the same . 