I have a corporation and would like to pay out premiums for critical illness insurance, what are the tax implications?

Allan Madan, CA
 Oct 24, 2012


When a corporation pays premiums for critical illness insurance it’s a non-deductible expense and is classified as a taxable benefit to the employee/shareholder. However, if a qualifying health and welfare trust is in place, then its deductible to the corporation and is not a taxable benefit to the employee/shareholder.


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