Business' Guide to Long
Term
Care Insurance
Long-term care insurance is one of the newest
employee benefits offered by businesses to attract and retain
top performers.
A growing number of companies offer this popular new benefit on
a voluntary basis; allowing employees to pay the full cost
through payroll deduction.
Be sure to check with your tax advisor and/or insurance agent
for specific restrictions, rules, tax codes etc. that may apply
before purchasing a policy or offering one to your employees.
WHO WILL BUILD YOUR BUSINESS WHILE YOU OR YOUR EMPLOYEES CARE
FOR A PARENT?
Caring for aging parents is a growing cause of employee
absenteeism estimated to cost businesses $17 billion each year.
Premium payments for a tax-qualified long-term care insurance
policy are deductible as personal medical expenses for those
taxpayers who itemize their deductions.
DEDUCT YOUR LONG TERM CARE PREMIUMS JUST AS YOU WOULD HEALTH
INSURANCE.
Payments for a tax-qualified long-term care insurance policy
purchased by a self-employed individual or sole proprietor are
currently treated as medical insurance premiums with the same
limits as those for individual taxpayers.
PREMIUMS PAID FOR A TAX-QUALIFIED LTC POLICY ARE FULLY
DEDUCTIBLE AS A BUSINESS EXPENSE.
Tax deductible insurance protection can be purchased for
employees and owners. Company-paid policies can cover spouses
and retirees.
PREMIUMS PAID FOR A TAX-QUALIFIED LTC POLICY ARE DEDUCTIBLE.
Premium payments for a tax-qualified LTC policy purchased for a
partner or owner (2%+ shareholder) are subject to the same rules
as self-employed individuals.
Premium payments for policies purchased for a
non-partner/non-owner (less than 2% shareholder/employee) are
FULLY deductible as a business expense. The same is true for
their spouse or tax dependents.
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