Hello,

We are a C Corp. hiring 2 perople, myself & my wife. I am the sole owner. We have a HRA plan, where the C Corp. reimburses the IRS-allowed medical & dental bills. Due to IRS Notice 2013 54, employers seem to now be limited to reimburse most medical costs, staring on 01/2014, except for very limited exceptions. Some exceptions are in Section 105. like dental and vision, among others, and One-employee plans.
Question: I have read somewhere that another exemption would be for small businesses that employ the wife, so the medical expenses for wife and sons are also allowed.

1) Since we are a 2 person C Corp and I employ my wife, can we still reimburse allowed expenses? Is this accurate, and is this accurate for a C Corp.
2) All references backing you replies with IRS laws. Codes, etc.. Will be greatly appreciated.