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ljkentucky
December 11, 2018
Solved

How to add S-corp owner's health and life insurance to wages

  • December 11, 2018
  • 5 replies
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I have just know found out that I have to add health insurance premiums paid for my 2 s-corp owners and each other's life insurance premiums to their wages so that they appear on their W-2's.  I am panicking because I don't know how to do this and I don't want to delay processing everyone's W-2's while I try to find this out.  Can someone please give me a "crash-course" on the simplest way to do this?

Best answer by ShiellaGraceA

Hi ljkentucky64,

Let me help you out with this.

Setting up an S-corp payroll item is easy. You can check out this support article for the step-by-step instructions:

https://community.intuit.com/articles/1436944-how-to-set-up-s-corporation-medical-payroll-items

Reach out to me if there's any way I can be of help.

 

For more information on taxes, forms, filings, payroll and other Year End activities, make sure to check out our Year End Resources page.

5 replies

S
ShiellaGraceAAnswer
December 11, 2018

Hi ljkentucky64,

Let me help you out with this.

Setting up an S-corp payroll item is easy. You can check out this support article for the step-by-step instructions:

https://community.intuit.com/articles/1436944-how-to-set-up-s-corporation-medical-payroll-items

Reach out to me if there's any way I can be of help.

 

For more information on taxes, forms, filings, payroll and other Year End activities, make sure to check out our Year End Resources page.

L
ljkentuckyAuthor
December 11, 2018
Thanks for the reply!  I would be using the year-end method - that's what they've done in the past.  I think (?) I understand setting up the actual payroll item  I'm not sure about  creating the zero amount check.  I assume I would start at unscheduled payroll.  How do I actually create the check?  How do I know that it will flow through to Box 14 on W-2?  Also the former CPA rep that handled this before said that the life insurance premium paid by one partner has to be added to the other partner's wage also.  Is this handled the same way using the same payroll item or a different one?  or is it combined with the health insurance?  Thanks so much for any help!
S
SpencerGOld
December 30, 2020

Hello - I just called QB Online support team (Case #: [removed]).  They said that there is no way to create a S-Corp check for health premiums and NOT deduct Payroll taxes (SS and Medicare).  However, federal and state taxes will not be reported on the S-corp check.

 

This is exact opposite of what I am trying to accomplish.  Please help.

NOT MY USER ID
NOT MY USER ID
December 11, 2018

@ljkentucky64, see the article below for help.

https://community.intuit.com/articles/1437207-apply-s-corp-medical-at-year-end-for-corporate-officer...

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    Maricelhe
    June 12, 2019

    Sorry but I have been trying to get an answer I keep asking and I only get information for S Corp, we change n 2018 From S corporation to Corporation, the state gave us penalties for not paying an estimated tax we always faithfully pay our weekly, monthly, and quarterly, yearly Taxes, so how does quickbooks give you estimated taxes for corporation? I dont see any, I have been thinkering and found that on the company file there is a drop down window for corporation, when I cliked on it, it reads that t will change all my tax forms, "WOW Scary so what can I do, because I don't see where these taxes are being generated from. hopefully someone can help, I contact qbks and they say they only deal with payroll taxes.. SAY HUH!

     

    :(

    MaryLandT
    MaryLandT
    June 12, 2019

    Thanks for joining us here in the Intuit Community, @Maricelhe.

     

    You can change your entity filing type in QuickBooks, however you'll lose all the current data on file. I suggest creating a back up of your data, then restore it to a new company file. This will keep the old company for tax forms since your EIN was not changed, only the forms you file. 

     

    To open a new QuickBooks Desktop company file:

    1. Go to your File menu.
    2. Select New Company.
    3. From there, you can restore the file and set up the corporation account.

    I've added this article for your guidance with the solution above: Create QuickBooks Desktop Company File Overview.

     

    The taxes being generated on your S corporation company are coming from the payroll run through the system. If you need to access your payroll tax forms and print them, check this out for the detailed steps: Process, Print, and Save QuickBooks Desktop Payroll Tax Forms.

     

    The information I shared above should help you clarify things out.

     

    Let me know if you have additional questions about getting the account change to corporation and I'd be glad to help you further.

      M
      Metals
      June 13, 2019

      I am going to try and thank you so much I have been asking and trying because I believed that there has to be another way to go, and my accountant forgot to mention this to us when he made changes to our businesses filing status. again thank you I will let you know how it went. 

       

      Thanks 

      JaneD
      JaneD
      January 6, 2020

      Hello there, amoskovitz.

       

      If you've followed ShiellaGraceA's instructions, the amount will show up on the Expense (P&L) and Payroll Liability (Balance Sheet) accounts when using the insurance deduction item on the paycheck.

       

      Payroll liabilities include the money you pay your employees, the withholding you take from their paychecks, and your payroll expenses as an employer. Your portion of the insurance deduction remains a liability until you pay them to the required agency.

       

      Let us know if you have further questions. We'll be around.

      _
      _HeatherD
      January 17, 2024

      All of theses are helpful but they keep talking about W-2 and how to record it.  I need to find out how to get that to show up on the quarterly taxes before I do the W-2. 

      The owners paycheck show the "taxable company items" and its correct amount on there last paycheck.

      My question is I am having an issue with adding that amount to the gross wages of the owners gross pay without the system taking taxes and having it show up on the quarterly reports Line 2 of 941 Fed and all the other quarterly reports for the 4th quarter?

      I am doing this at the end of the year and I am using QB desktop. 

      Any help with this will be greatly appreciated. 

       

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