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Can Health Insurance be paid out of business funds?

As a new owner operator leased on to a carrier, is it ok to pay for health insurance out of business funds? Set up as LLC, S Corp. Also, accident insurance?

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Yes, I am a Nebraska Inc. S corp, I have the premiums taken from the trucking checking account. Then at tax time it is added onto my W-2. Check with your accountant, rules change yearly. Most often, health insurance premiums are tax exempt.

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Thank you! Great help as we are getting things set up for our first trip to the accountant. Good to get an answer from someone who knows from experience.


If you own the company, your health insurance would be considered part of your salary. One easy (and still legal) work around to allow the insurance to be deductible, would be to hire your spouse for a small salary, for secretary, or some other position. By HIRING your spouse (as long as they are not also owners of the business), you can provide your "employee" with health insurance as a business expense, therefor it is tax deductible.


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Jeff will be eternally grateful.
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