Including Insurance and Other Benefits

A variety of insurance and related benefits are tax deductible to corporations for all employees. If your business isn’t incorporated, as the owner, you can’t deduct the cost of the insurance plans discussed in this section, with the exception of health-insurance plans, for yourself, but you can deduct them for your employees.

Health insurance

Employees usually value their health-insurance coverage over other traditional employee benefits (see the earlier section on retirement plans for details). Of course, not all your current and prospective employees will value health-insurance coverage the same. For example, some married employees may already be covered through their spouses’ plans and may not need or want health coverage through your small business. Similarly, younger, unmarried employees, who think they’re indestructible, may place a greater value on flexible work schedules than they do on health insurance.