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May 17, 2024
Question

S-Corp Owners Health Insurance vs Reimbursement additional payment types. If you are trying to get reimbursed for your health care prem, which bucket to you put under

  • May 17, 2024
  • 1 reply
  • 0 views
I pay for this health care premium through my personal and do not want to switch. I want to be able to deduct it as an expense through an accountable plan and get reimbursed for but it needs to be captured on my w2. 

I think the answer is reimbursement, but wanted to confirm with the community

1 reply

May 18, 2024

You're absolutely correct, Chen. We can record the reimbursement as an expense in QuickBooks Online (QBO).

 

Before we record the reimbursement, let's ensure your employee's insurance is completely set up so it will be included in their paychecks and for in it to reflect in your W2.

 

Moreover, you can record the reimbursement through check in QBO. Here's how:

 

  1. From left menu, select + New.
  2. Select Check.
  3. To reimbursed the personal funds, choose a bank account.
  4. Select Partner's equity or Owner's equity in the Category column.
  5. Enter the amount.
  6. Once done, select Save and close.

 

To record it as an expense, check out this article for more details: Record the reimbursement as an expense.

 

In addition, if you wish to view your employee taxes and contributions, including your payroll totals, you can visit this article: Create a payroll summary report in QuickBooks.

 

I'm always around to respond if you have further questions or concerns about the process of recording reimbursement in QBO. Have a good one.

May 18, 2024

But what's the difference between when to use "S-Corp Owners Health Insurance" vs "Reimbursement" 

 

Do both of these show up on the W-2? 

 

Use Case 1: You pay healthcare insurance personally but want to get reimbursed from S-corp to be expensed. 

What are the Payroll setup steps for this? 

Do you use "S-Corp Owners Health Insurance" vs "Reimbursement" for additional payment type?

Does this show up on your W-2 as a requirement to ensure this is deductible? 

 

Use Case 2: S-Corp Pays for your healthcare insurance and provides it. 

The steps you provide sound like use case 2.