Employee Benefits Tax Deductions
The cost of providing employee benefits is generally fully deductible. Health insurance, retirement plans, and other fringe benefits reduce your taxable income.
employee benefitshealth insuranceretirement401kfringe benefits
check_circleWhat You Can Deduct
- checkEmployer health insurance contributions
- checkRetirement plan contributions (401k match)
- checkLife and disability insurance premiums
- checkEmployee education assistance (up to $5,250)
- checkDependent care assistance
- checkEmployee wellness programs
lightbulbTips for Keeping Records
- tips_and_updatesHealth insurance premiums paid for employees are 100% deductible
- tips_and_updatesRetirement plan contributions have annual limits that change yearly
- tips_and_updatesDocument all benefit programs in an employee handbook
- tips_and_updatesSome benefits like commuter assistance have specific IRS limits
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Medical Expenses Deductions
Deductible medical expenses that exceed 7.5% of your adjusted gross income. Includes doctor visits, prescriptions, and health insurance premiums.
Insurance Premiums Deductions
Business insurance premiums are generally fully deductible. Includes liability, property, professional, and health insurance for self-employed.