USA LLC paid health insurance - group policy

[acfixerdude]

I own a business (LLC) and pay 50% of my employee's insurance premium and have been paying 100% of mine (withhold 50% on employee's checks and write a monthly business check for full premium including my own). Are these payments 100% deductible as a business expense, or all of it except my portion? I'm setting myself up on payroll now and want to have it show on my payroll as either 100% company paid or 50% company paid and 50% paid from my check. Is there anything disallowing (tax purposes) the company from paying 100% of mine but only 50% of employees?

Thanks in advance for your answers.

 

[Steve-LevelUp]

You are allowed to compensate your employees as you wish, so there is nothing disallowing one person vs another.

However, the deduction of 100% of the insurance needs to be carefully worded. Yes, technically, you are deducting 100% of the insurance premium, because you pay this. However, you are also receiving 50% of the total amount back from employees. So, this payment from employees needs to be added back as income.

The effect, in the end, is that the company is only able to deduct 50%, but it gets to that in a round about way.

If there are some employees which do not have a deduction, then you can claim 100% of that individuals.

Note, I am not a tax expert, but I believe the above is correct.