Article Date:
April 2019

Word Count:



How to Reimburse Medicare When You Have Fewer Than 20 Employees

Last month we wrote How to Deduct Medicare as a Business Expense and mentioned that if you operate as a C corporation and have fewer than 20 employees, you can reimburse Medicare for those employees who are on Medicare.


For the Medicare reimbursement, we referenced TD 9744.1 This is the preamble to the IRS final regulations on various aspects of the Affordable Care Act (ACA).


In this article, first we expand the Medicare reimbursement group from the C corporation to all employers with fewer than 20 employees (proprietorships, partnerships, S corporations, and C corporations).


Second, we take the tortuous language in TD 9477 that allows the Medicare reimbursement without worry of the $100-a-day penalty and put it into plain English so you can put it to use.2 ... Log in to view full article.

Log in to view full article

Already a subscriber?

Email Address


Log In Send me my password

You'll be able to read the full article and get instant access to the last few issues of the Tax Reduction Letter

Not yet a subscriber?
with a money-back guarantee