Skip to main content
N
natasha@treasure
September 3, 2024
Question

Howto correctly set up SCorp Pd Med Premium pay type (the company payment of 2% Shareholder Owner health insurance premiums-reimbursement) so it is not FICA taxable?

  • September 3, 2024
  • 1 reply
  • 0 views
Original commenter did not share additional details

    1 reply

    Candice C
    Candice C
    September 3, 2024

    Good morning, @natasha@treasure. 

     

    I appreciate you coming here to the Community with your question about setting up S-Corp Medical Premium. 

     

    S corporation medical insurance is a noncash fringe benefit provided to shareholders owning 2% or more of the corporation. 

     

    You can set up an S-Corp Medical payroll item in QuickBooks Payroll, and report them on your employees paychecks and tax forms. Review the guide below for all the details and steps to help get this squared away: 

     

    Set up an S-Corp Medical payroll item for your corporate officers

     

    Feel free to reach back out if you have any further questions. We're always here to help! 

    G
    gdirienz
    January 4, 2025

    I have gone through the "set up an s-corp medical payroll item for your corporate officers " article

    Steps # 1 and 2 are complete

    Here is where my confusion lies

    Create net zero paycheck

    #4 S-Corp Adjustment item. I don't see this in my payroll item dropdown. Do I set up a payroll item for this?

    If so, is this an addition or company contribution? Is this tracked on tax forms

    #7 Employee paid tax advance item. Do I also need to set this up in payroll items? If so what selections do I make when creating this?

    Thanks

     

    Terms & ConditionsAccessibility statement