I am the owner of an S-Corporation. We provide our employees with health insurance. We would like to also reimburse our employees for co-payments or deductibles paid to doctors or pharmacies. Is this possible?

It is technically possible for the S Corporation to pay the co-payments and/or deductibles. However, generally any amounts paid will be treated as taxable income reported on the Form W-2 similar to the health insurance premiums. Specifically, the amount reimbursed would be reported on Box 14 of the Form W-2. If your employer has a health reimbursement plan in place via Section 105(B), these reimbursement are treated as tax-free.