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Accounting, Payroll & Pension Issues/Medical Insurance Deductions
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Question
Hi. I have an LLC with 2 other gentlemen. I am also employed part time but am not eligible for medical insurance with my employer. I have a high deductible insurance poliy for my family that i pay out of my personal funds. The LLC is producing cash flow that can now cover my medical premiums. Does my medical insurance need to be a certain type of insurance before i can deduct it from my schedule C and draw from the LLC? thanks!!!
It does not have to be a specific kind of insurance policy as long as it is for insurance and money cannot be drawn out of it for other reasons or it cannot be cashed in for money.
The other two gentlemen with intrests in the company should be in on the insurance policy and it should have the same benefits for all three if they should wish to obtain the policy on their families. That is how it is with a company with several partners.
Shirley
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Answers by Expert:
Shirley McAllister, CPP, PHR
Expertise
I can answer payroll questions, payroll tax questions, 401K questions. No stock option questions please and I have some knowledge of other pensions but am most familiar with the 401K pension. I can answer U.S.and Canada payroll questions proficiently and have a good general knowledge of UK and South Africa and some knowledge of Australia and New Zealand Payroll procedures. Please do not ask me homework questions I do not have time to answer them.
Experience
25 years with an international company in the Human Resources, Payroll and Payroll Tax areas.
Organizations
SHRM, APA, I.O.M.A.
Publications
I.O.M.A. and BNA
Education/Credentials
P.H.R., C.P.P., Canadian Payroll Administrator, Successfully passed APA class on UK Payroll Administration.
Boise State University Human Resource Certification
Awards and Honors
APA Hotline Citation of Merit for last 8 years.
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