Hi! Love the show, the youtube, all of it. Question on the current “tax deductibility” of employer-sponsored direct primary care (flat-rate medical care) for the employer, and whether it must all be paid for by the employer, or can it be deducted from employee wages, and if so, can it be deducted pre-tax?
I know that there was a legislative bill being pushed in 2019 to clarify things, but I’m not finding any clear info on what the current standing is.
In this situation, employer is small business, has less than 50 employees, and has no “typical” health insurance plans offered - it is the local DPC membership combined with a membership cost-share plan (Zion, out of Utah). Employer has been (inadvertently) paying for all the of DPC costs, and splitting the Zion cost-share program with employee after-tax deductions, expensing his portion under Payroll Expenses: Health Benefits account. I’m thinking that’s fine, without any risk of IRS issues. Is he able to shift some or all of the DPC membership costs to the employees, or does he risk the $100/day fine?
What else should I be thinking about from an accounting and tax perspective on this?
THANK YOU!
Tracey Roberts
Future Certified Main Street Tax Pro