Certain fringe benefits (such as health insurance) are deductible for the employer and non-taxable for the employee. 1. What is the difference between the taxation of health insurance for C-corporation versus S-corporation employees? See link below. 2. Why do you think The IRS singled out S-corporations for stricter treatment in this area? 3. Based on what you learned now and in earlier assignments, list some of the pros and cons of an S corporation versus C corporation.