That isn't legal btw... under the new Obamacare laws if a company offers health policies it has to be equal across the board. You cant offer a 50% reimbursement to some but 100% to yourself or others. If you get audited you will get fined and the fine is not light from what we were told. You may want to talk to you agent about it.
You might consider a Small Business Qualified Health Reimbursement Plan (QHRP). These became legal in 2017. You can legally reimburse employees up to a set annual amount (mine is $2700) with a monthly maximum of 1/12 of that. . You must use a third party administrator (mine is Peoplekeep). Employees submit expenses on app and you are notified by TPA to reimburse up to the monthly amount. Expenses over monthly amount carry over to next month until expense paid or maximum reached. This is NOT insurance, only cost is admin fee ($75 in my case up to 5 employees) and actual expenses reimbursed. Covers Obamacare but not private insurance premiums, covers deductibles, co-pays and virtually any medical expense. Those with spousal insurance really benefit as spouses insurance covers main expense and QHRP covers deductibles and copays. (Since it's not legally insurance, no coordinating benefit restriction) Tax deductible and far less expensive alternative to provide something valuable other than insurance.
My accountant told me this is not an option as this would be considered additional income, which would be subject to all the payroll taxes.
Respectfully, I believe your accountant may be dealing with out of date information. I initially had my CPA check this out and he sounded surprised at the time (early 2017) to find out the law had changed. Check out https://www.zanebenefits.com/hubfs/...to the Small Business HRA.pdf?t=1498253766507 for a complete overview. If you google QSEHRA you or your accountant will find all kinds of information regarding this.
