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itsanewbiz2020
March 23, 2024
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How do I post reimbursing myself to pay S-Corp?

  • March 23, 2024
  • 1 reply
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Hi,

 

I am trying to figure out how to post my S-Corp reimbursing me for paying my portion of the premium of the officer health insurance through my paycheck. I end up with either no health insurance expense or a liability.

 

Some article I read said to offset the reimbursement against draw. But why would I have to do that? It's like paying health insurance, only paying me to pay the insurance,

 

Any help with this would be appreciated. I've been ruminating about this for weeks and it is keeping me from finishing my S-Corp and personal taxes.

 

Thank you.

Best answer by Rainflurry

@itsanewbiz2020 

 

The company can't reimburse you because it doesn't owe you anything.  When the S-Corp paid you the wages for your portion of health insurance, it incurred a wage expense.  Those wages were then put into a liability account that was owed to the health insurance provider.  The company portion was another expense the company incurred and that was recorded as Officer Health Insurance.  That company portion is reported as additional wages on your W-2.  Therefore, if the S-Corp pays you for your portion, it must either be a shareholder distribution or additional wages.  

1 reply

Rainflurry
RainflurryAnswer
March 23, 2024

@itsanewbiz2020 

 

The company can't reimburse you because it doesn't owe you anything.  When the S-Corp paid you the wages for your portion of health insurance, it incurred a wage expense.  Those wages were then put into a liability account that was owed to the health insurance provider.  The company portion was another expense the company incurred and that was recorded as Officer Health Insurance.  That company portion is reported as additional wages on your W-2.  Therefore, if the S-Corp pays you for your portion, it must either be a shareholder distribution or additional wages.  

    I
    itsanewbiz2020Author
    March 23, 2024

    I am paying the insurance company. So, the money it is giving me is to pay the insurance, not reimburse me for the taxed money. It's like I am the insurance company being paid through my paycheck.

     

    I don't see where QBO payroll is posting to anything other than a liability. I don't see the expense being booked anywhere. So, it can either pay me for the company's portion or pay the expense from the liability, not both.

     

    So basically, I am trying to pay the liability through a reimbursement of the company portion of the health insurance I am paying for personally. The company isn't actually paying anything other than me.

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