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SheilaKB
January 6, 2022
Question

health insurance for s corp owners on w2

  • January 6, 2022
  • 1 reply
  • 0 views

For payroll, I need to enter an amount paid to an owner for health insurance. The amount should be included on the shareholder’s W-2 strictly for income tax withholding tax purposes; those additional wages are not subject to FICA taxes (Social Security and Medicare taxes) or Federal Unemployment Tax Act (FUTA).] How do I do this?

1 reply

C
Catherine_B
January 6, 2022

I can walk you through how to set up your employee's S-Corp Owner's Insurance, SheilaKB.

 

QuickBooks is compliant with the IRS calculation on your pay types and wages such as S-Corp owner's health insurance. The pay type taxability is exempt for Social Security, Medicare, and Federal Unemployment Tax and is taxable for Federal Income Tax. 

 

To add this pay type, you can follow these steps:

 

  1. Select Workers, then Employees.
  2. Click the employee's name
  3. Select the pencil icon beside Pay.
  4. In section 3, select the pencil icon and maximize Even more ways to pay employee. Then select S-Corp Owner's Insurance.
  5. You can add the Recurring amount or leave it blank. 
  6. Select Done.

Once you run payroll, you will have the option to enter the S-Corp amount.

 

Feel free to use these references in managing your payroll types in running payroll and preparing your tax forms: 

 

Please let me know if you have additional questions about QBO. I'm always ready to help. Have a great rest of your day.

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