J.K. Lasser's Small Business Taxes 2017

CHAPTER 19 Medical Coverage

1. Health Care Mandates
2. Deducting Medical Insurance for Employees
3. Deducting Health Coverage by Self-Employed Persons and More-Than-2% S Corporation Shareholders
4. Using Medical Reimbursement Plans
5. Tax Credit for Contributions to Employee Health Coverage
6. Shifting the Cost of Coverage to Employees
7. Setting Up Health Savings Accounts (HSAs)
8. Archer Medical Savings Accounts (MSAs)
9. Health Reimbursement Arrangements
10. COBRA Coverage
11. Wellness Programs
12. Reporting Health Coverage on W-2s
13. Reporting Health Coverage on Forms 1095

Medical coverage is an expensive personal expense for most people. So, for many, a job that provides medical coverage offers an important benefit. For the small business owner there is often a need to obtain personal coverage. It may also be good business practice to offer medical coverage as a fringe benefit to attract and keep good employees. A write-off of all or a portion of the cost of medical coverage is a significant cost-saving feature of providing such coverage.

On March 23, 2010, the historic Patient Protection and Affordable Care Act (ACA) was signed into law; the following week the Health Care and Education Reconciliation Act became law. Essentially, these acts mandate that every individual in the United States have health coverage (individual mandate), and that certain employers provide affordable coverage or pay a penalty (employer mandate). On June 28, 2012, the U.S. Supreme Court upheld the constitutionality of the individual ...