Small Business – S Corporation
…IRS says, proper administration of your Health Reimbursement Arrangement (HRA) is crucial in obtaining the tax favored treatment when reimbursing shareholders for their medical expenses, including medical insurance premiums.
Many are unaware that Medicare premiums are a deductible HRA reimbursement!
Also, IRS states the shareholder must include their HRA reimbursements on their Form W-2 to be a valid deduction.