Are StretchDollar health benefits tax deductible for my business?

Yes. StretchDollar offers ICHRA group benefit plans designed for small businesses. ICHRA plans offer tax advantages for the employer and the employee.

Any payments your business makes toward employees' StretchDollar health benefits are tax deductible as a business expense. The benefit dollars are also not subject to payroll taxes, such as Medicare, Social Security, and unemployment taxes. They are also tax-free to employees, and you do not need to report them on an employee's W-2. 

While StretchDollar health benefits are not reported on a W-2, there are some reporting requirements that apply to ICHRAs. You can read more about them here. StretchDollar will provide you with some of the data you’ll need to complete 1095-B forms. We recommend that you also contact your tax advisor for help with any specific tax questions.