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OdieW
January 18, 2023
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How do you add last year's health insurance premiums for s-corp?

  • January 18, 2023
  • 1 reply
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Hello,

I just recently found out that I could have had my s-corp reimburse for my health insurance premiums thru my payroll.  How do I get the insurance premiums reimbursed to me?  Just write a check?  Or do I need to do unscheduled payroll but for 2022??  Is that even possible?  
I just need to somehow get the insurance premiums onto my W2 for 2022.

Any advice would be appreciated.

    Best answer by ReymondO

    Good day, @OdieW.

     

    You can run an unscheduled payroll to reflect the insurance premium on your W2 for 2022. Here's how:

     

    1. Go to the Employees menu and select Pay Employees.
    2. Choose Unscheduled Payroll from the check types.
    3. Verify the Pay Period Ends date, Check Date, and QuickBooks Bank Account.
    4. Select the employees you want to pay.
    5. You can enter hours using the grid, or to see everyone's paycheck details, click Open Paycheck Detail.
    6. Select Save & Next to go to the next employee, or select Save & Close to go back to the Enter Payroll Information window.
    7. Click Continue.
    8. Review the Check/Direct Deposit printing options.
    9. Verify the amounts for each employee, and select Create Paychecks.

     

    For more info, you can check out this article: Create and run your payroll.

     

    Moreover, you can check out this article for more insights on how QuickBooks populates W2 and supported pay types and deductions impacts federal taxes and forms: W2 form boxes explained

     

    You’re always welcome to visit the Community if you have any questions about t S-Corp Owners Health Insurance in QuickBooks. Please know I’ll be right here to make sure you're taken care of.

    1 reply

    R
    ReymondOAnswer
    January 18, 2023

    Good day, @OdieW.

     

    You can run an unscheduled payroll to reflect the insurance premium on your W2 for 2022. Here's how:

     

    1. Go to the Employees menu and select Pay Employees.
    2. Choose Unscheduled Payroll from the check types.
    3. Verify the Pay Period Ends date, Check Date, and QuickBooks Bank Account.
    4. Select the employees you want to pay.
    5. You can enter hours using the grid, or to see everyone's paycheck details, click Open Paycheck Detail.
    6. Select Save & Next to go to the next employee, or select Save & Close to go back to the Enter Payroll Information window.
    7. Click Continue.
    8. Review the Check/Direct Deposit printing options.
    9. Verify the amounts for each employee, and select Create Paychecks.

     

    For more info, you can check out this article: Create and run your payroll.

     

    Moreover, you can check out this article for more insights on how QuickBooks populates W2 and supported pay types and deductions impacts federal taxes and forms: W2 form boxes explained

     

    You’re always welcome to visit the Community if you have any questions about t S-Corp Owners Health Insurance in QuickBooks. Please know I’ll be right here to make sure you're taken care of.

      O
      OdieWAuthor
      January 19, 2023

      @ReymondO 

      Sorry, I think I jumped ahead of myself with my initial question.  How to I set up the S-Corp medical premium on Quickbook Desktop?  I have not done that yet and not sure how to do it.  I am a single member S-Corp

       

      Also, can I pay 12 months of Medical Premium at once?  I didn't know I could have the medical premiums paid thru my S-Corp until recently.

      LieraMarie_A
      LieraMarie_A
      January 19, 2023

      Hi there, @OdieW. I've got the steps you need to set up the S-Corp Pd Med Premium item in QuickBooks Desktop.

       

      You need a company contribution payroll item to track the medical insurance. Follow the steps below to create this item:

       

      1. Select Lists, then Payroll Item List.
      2. Select the Payroll Item ▼ dropdown, then New.
      3. Select Custom Setup, then Next.
      4. Select Company Contribution, then Next.
      5. Enter the name of the item, then Next.
      6. Select the name of the agency (or add it) and the account number. 
        • In the Liability account field, select the account you’ll use to track company contributions. And in the Expense account dropdown, select the expense account that you want to track the item. Select Next.
      7. In the Tax Tracking Type window:
        • Select S-Corp Pd Med Premium for the 2% shareholder that has the same medical insurance plan to all employees.
        • Select  Fringe Benefits if the 2% shareholders have a different plan from other employees or don't offer the plan to employees at all.
      8. Select Next three times, then Finish.

       

      Then, assign this item to your profile. Here's how:

       

      1. Select Employees, then Employee Center.
      2. Double-click your name.
      3. Select Payroll Info.
      4. In the section for Additions, Deductions, and Company Contributions, under Item Name, add your S-Corp payroll item.
      5. In the Amount column, enter the amount per paycheck to take out. In the limit field, enter the total premiums for the whole year.
      6. Click OK.

       

      Once done, run your payroll with an S-Corp medical insurance item on it. You can pay 12 months of premiums at once, However, keep in mind that the premium payments are considered business expense. The IRS may require you to pay them on a monthly basis. I recommend consulting with your tax advisor to ensure this aligns with the tax rules of your specific state. If you don't have one, visit the ProAdvisor site to run a search.

       

      Finally, if you need to track your contributions, pull up payroll reports in QBDT Payroll.

       

      Feel free to visit the Community again if you need more help with running payroll. We're always here to help. Have a great day ahead!

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