Adding S Corp 2% Health Insurance to wages in QB Desktop

Hi there, @dmcintire33. 

I'm happy to lend a hand with recording the 2% S Corp health insurance premiums. 

Since you're using QuickBooks Desktop, you'll need to create the payroll item and enter a liability adjustment to record the premium correctly. If you are a 2% shareholder and offer the same medical insurance plan to all your employees, follow these steps to set up the payroll item.

To create a payroll item:

1. Go to List at the top menu bar, and choose Payroll Item List.
2. Click on the drop-down for the Payroll item, and select New.
3. Choose Custom Setup, and click on Next.
4. Select Company Contribution, and tap on Next.
5. Enter a name, such as S-Corp Medical Insurance, and select Next.
6. Leave the fields as they are, and choose Next.
7. Click on the drop-down for Tax tracking type, and select SCorp Pd Med Premium.
8. Click on Next.
9. On the Taxes page, do not make any changes and click on Next.
10. In the Calculate based on quantity, leave the default set to Neither and click on Next.
11. In the Default rate and limit, leave the fields blank, then select Finish.

For more information about setting up the payroll item, click on this link: S-corporation medical payroll item.

Once done, you can perform a liability adjustment. This is to ensure the premium is reported on the W-2.

I also wanted to share a similar thread where users are helping each other with this same question. There is a lot of helpful information within it: https://quickbooks.intuit.com/learn-support/en-us/employees-and-payroll/how-to-add-s-corp-owner-s-health-and-life-insurance-to-wages/00/205324.

I'm here if you have any questions or concerns. Take care!