Skip to main content
M
mrsbailey
January 3, 2024
Question

How to add Company Paid Health insurance premiums to W2 for shareholders

  • January 3, 2024
  • 1 reply
  • 0 views

I use QBO payroll. Our business pays for Colonial Life Dental/Vision for all employees & the 3 owners. We are a partnership that files as an S-Corp. Every year my CPA says to add the total of the premiums to the owner's W2s. Every year, I goof this up and they end up having to create an additional W2 for the owners with the premiums on them. Please tell me how to add this info to the W2s myself! My CPA would be so proud if I didn't goof this up again, LOL. 

 

Thanks! 

 

Also, I have a QBO Accountant account if I need to do it through that.

1 reply

C
Carneil_C
January 3, 2024

Hi there, @mrsbailey.

 

I'd be delighted to guide you on how to add company-paid health insurance premiums to W2 for your shareholders.

 

In QuickBooks Payroll, you have the option to create an S-corp medical payroll item. Here's how: 

 

  1. From the Payroll menu, choose Employees.
  2. Select your employee.
  3. Go to Pay types select Start or Edit.
  4. In Additional pay types, select S-corp Owners Health Insurance.
  5. Enter an amount. Or leave it blank, then enter the amount as you run payroll.
  6. Click Save.

 

To further understand S-corp medical payroll, read this helpful article: Set up an S-corp medical payroll item for your corporate officers.

 

I'm also adding this resource that might be useful if you want to run payroll reports in QBO to help you track your business: Run payroll reports in QuickBooks Online Payroll. The same resources give you details on marking a report as a favorite and customizing and printing reports.

 

Let me know how else I can help you with QuickBooks-Payroll tasks. I'm more than happy to lend a helping hand. Keep safe.

M
mrsbaileyAuthor
January 3, 2024

Thank you so much. I did find this info after I posted the question.

 

The part I still can't figure out is how do I add the annual total to W2s for 2023.

 

When I try to run payroll dated 12/31/23 with $0 salary, it tells me I can't run a check for zero dollars.

When I try to add a fringe benefit check for 12/31/23, it says I can't because I may incur a tax penalty and that I need to use a closer date.

Nicole_N
Nicole_N
January 4, 2024

I'm here to ensure you can run a check for zero dollars and add a fringe benefit check in QuickBooks Online, @mrsbailey. 

 

We need to create a zero net paycheck to run a check for zero dollars. First, Add an Other Earnings pay type to the employee's profile. Then Set up a retirement plan deductions, and set the deduction amount to zero. Use the Gross up formula to determine the gross pay amount. After that, make sure to complete the steps presented below: 

 

  1. Go to Payroll, then Employees 
  2. Click Run payroll.
  3. Choose an employee and pay period.
  4. Zero out the employee's regular pay or salary.
  5. Select the Taxable offset box, and enter the amount determined using the gross-up formula. Make sure that the other pay types are 0.
  6. Tap Actions ⋮ then Edit paycheck.
  7. In the Employee taxes section, you can zero out Federal Income Tax and State Income Tax. 

 

Refer to this article that details the process: Create a zero net paycheck.


Moreover, adding a fringe benefit to your employee profile depends on the type of benefit you want to set up. Please know that there are other benefits in QuickBooks Online Payroll that we don't support. You can refer to this article to set up and follow the instructions according to its type: Add fringe benefits to paychecks.

 

You may also run various payroll reports to view useful info about your business and employees.


Please leave a reply if you have other questions about running checks in QuickBooks. The Community is here to help.

    Terms & ConditionsAccessibility statement