Article Date:
July 2010

Word Count:



Tax Tips for S Corporation Employing Owner’s Mom

Having your mom work in your S corporation can be a problem.


You are the cause of this problem.


Your corporation taints your mom. Here’s how the taint happens and why it needs attention to ensure tax benefits for health insurance.


Health Insurance Fringe Benefit Rule


For fringe benefit purposes, tax law1



treats your S corporation as a partnership, and


treats a more-than-2-percent shareholder as a partner.


Health insurance premiums paid by a partnership to (or for the benefit of) one of its partners are ... Log in to view full article.

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