Solution Provider, Madison Strategic Partners Group, Greater New York City Located, Serving Clients Nationwide
The simple answer to your question is that insurance premiums ARE NOT a deductible expense for anyone.
However, depending upon the use of the insurance, for instance, as part of an Supplemental Executive Retirement Plan (SERP plans), there are tax benefits (deduction) to the employer realized when the policy's cash value is paid out to the employee. Additionally, administrative costs may be tax-deductible as a business expense.
Separately, under an executive bonus plans where the bonus is paid directly in the form of premium payments to the insurer for policies owned and FBO of the executive, the employer has no ERISA reporting, potentially tax deductible costs and can avert tax rules applicable to Qualified Pans and employer owner line insurance.
Please feel free to contact me through my profile if you have additional questions.
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However, depending upon the use of the insurance, for instance, as part of an Supplemental Executive Retirement Plan (SERP plans), there are tax benefits (deduction) to the employer realized when the policy's cash value is paid out to the employee. Additionally, administrative costs may be tax-deductible as a business expense.
Separately, under an executive bonus plans where the bonus is paid directly in the form of premium payments to the insurer for policies owned and FBO of the executive, the employer has no ERISA reporting, potentially tax deductible costs and can avert tax rules applicable to Qualified Pans and employer owner line insurance.
Please feel free to contact me through my profile if you have additional questions.