Can my C Corporation write off employee doctor visits if it is not covered by insurance company?

ANSWER

The BIDaWIZ Team's Answer:

Does your company currently provide health insurance to these employees? Or do these employees have insurance through the healthcare exchanges as a result of the Affordable Care Act? This is a very important piece of information because if your company does not provide health insurance and you decide to reimburse employees for these visits, your company could be subject to the ACA as per IRS Notice 2013-54.

Assuming your company provides health insurance, the reimbursement for doctor visits & copayments would be considered a taxable fringe benefit to the employee (included in wages) and a deduction to the C Corporation as per IRS Publication 15-B and IRC Section 132. Please note that the reimbursement could be excluded from the employee's wages if the payment was made through a qualified plan such as a Health Savings Account or Flexible Spending Account.

References: IRS Publication 15-B; IRC Section 132
State: California