S Corp owner health insurance

Thank you for reaching out about the S Corp owner's health insurance deductions, PFreije. To correct the pre-tax deductions and ensure accurate FICA calculations, set the payroll item's tax tracking type to S Corp Paid Medical Premium.

This tracking type is essential because it specifies how health insurance premiums are treated for tax purposes. Using the correct tracking type, you can ensure that the premiums are reported properly and that FICA taxes are calculated accurately on the owner's wages.

Here's How:

1. Go to Listsmenu, then Payroll Item List.
2. Select the Payroll Item drop-down arrow, then New.
3. Click Custom Setup, then Next.
4. Hit Deduction, then Next.
5. Enter the name of the deduction, and select Next.
6. Choose S Corp Paid Medical Premium in the Tax tracking type drop-down arrow.
7. Tap Next three times.
8. Leave the default rate and limit fields blank unless these apply to all your employees. You’ll add the rate and limit when the item is added to the employee profile.
9. Tap Finish.

After that, adjust the payroll liabilities. It ensures an accurate reflection of FICA taxes and corrects any discrepancies from previous deductions. Updating the payroll liabilities aligns your records with the correct amounts owed, ensuring compliance and avoiding tax reporting issues.

Additionally, it's a good idea to seek guidance from your accountant to ensure the correct accounts are used throughout this process. They can provide tailored advice based on your specific situation and help ensure compliance with tax regulations. This collaboration will help prevent any potential issues and ensure accurate financial reporting.

Furthermore, visit this link to learn how to create a payroll summary report to see what you've paid in your QuickBooks Desktop: Create a payroll summary report.

Let me know if you have further questions about correcting Scorp's health insurance. I want to ensure everything is taken care of for you.