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Setting up health insurance to show up on W2 in box 14

Forum|Forum|5 years ago
March 24, 2021
3 replies
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My company's BCBS and Aflac come out of their paychecks pretaxed. There is no pretaxed option for this so I need to create a new one. I believe I used the Other option as the tax tracking type and the BCBS and Aflac amount would then show up in box 14 on the W2. BUT then it is not taken out of the taxable wage on line 2 of the 941 tax form. Then I changed the tax type to Premium Only/125 so it will be included in wages on 940 and will come out of line 2, 5a and 5c on the 941 but it is NOT on the W2 then. How do I get these to come out of the 940 and 941 correctly AND show up in Box 14 on the W2?

QuickBooks Desktop

Best answer by BettyJaneB

Hello there, @AbbyHCU.

I got some clarifications to share regarding the posting of your health insurance in the system.

Cafeteria Section 125 Plans do not appear on any box of the W-2. The IRS does not require this information. Some payroll services will put this on Box 14; Intuit has chosen not to do this.

The information that will show up on box 14 of the W2 in QuickBooks Desktop are the following:

To give you more details how the system populates the W2 form's data, please see this link: Learn how QuickBooks Desktop payroll populates the boxes on the IRS Form W-2.

Moreover, for more insights about the Section 125 Health Insurance (Cafeteria Plan) set up in QBDT, you can always read through this reference: Set up a Section 125 Health Insurance (Cafeteria) plan payroll item in QuickBooks Desktop.

Should you need anything else about this or with QuickBooks Desktop, just let me know by leaving a comment below. Take care!

JasroV

Thanks for sharing the details of your issue with us, Abby.

I can share with you some details about the Premium Only/125 Health Insurance in QuickBooks Desktop (QBDT).

Section 125 Plans doesn't appear on any box of the W-2 forms as IRS does not require this. Thus, intuit chosen not to. For more details and guidelines about this, you can refer to this article: Set up a Section 125 Health Insurance (Cafeteria Plan).

Moreover, I'm adding these resources that you can read for future reference in filing your payroll forms:

Know that you’re always welcome to post a reply in this thread if you have any other concerns about payroll forms in QuickBooks. I’ll be around to listen and back you up. Have a good one and keep safe.

A

AbbyHCUAuthor

This was not helpful. I know which tax tracking type I need. The Premium Only/125 is the correct option but with that option it does not show up on the W2. I need for it to show up on the W2.

BettyJaneBAnswer

Hello there, @AbbyHCU.

I got some clarifications to share regarding the posting of your health insurance in the system.

Cafeteria Section 125 Plans do not appear on any box of the W-2. The IRS does not require this information. Some payroll services will put this on Box 14; Intuit has chosen not to do this.

The information that will show up on box 14 of the W2 in QuickBooks Desktop are the following:

To give you more details how the system populates the W2 form's data, please see this link: Learn how QuickBooks Desktop payroll populates the boxes on the IRS Form W-2.

Moreover, for more insights about the Section 125 Health Insurance (Cafeteria Plan) set up in QBDT, you can always read through this reference: Set up a Section 125 Health Insurance (Cafeteria) plan payroll item in QuickBooks Desktop.

Should you need anything else about this or with QuickBooks Desktop, just let me know by leaving a comment below. Take care!

J

jsfreud

No offense. NONE of the below is either helpful, or accurate. Prior to three or so years ago, when your Assisted Payroll Help Desk vanished, every year was a breeze when folks who actually knew what they were doing would manually walk me through placing my Sub-S health insurance premiums in Box 14. NOW, NO ONE AT ASSISTED PAYROLL HAS A CLUE!!! And, to add insult to injury, these so-called "help" articles are anything BUT helpful. Last year ONE Individual...ONE...rescued me on 12/21/2020 (Dylan R. - who has since left Intuit) and in literally FIVE MINUTES walked me through the steps to manually report my health insurance premiums in MY BOX 14 W-2, as the owner of a Sub-S corp. I NEED SOMEONE NOW TO WALK ME THROUGH IT.

I will write down the steps this time and never bother y'all again - promise!!! PLEASE HELP-agggghhhhh!!!:-(

AlcaeusF

Hello @jsfreud,

I appreciate you for reaching out to us here in the Community. I know how important to show the correct figures when filing your W-2s in QuickBooks Desktop.

I would feel the same thing if this happens to me after seeking assistance. Allow me to chime in and help you manually report your health insurance premiums.

You can report health insurance you offer or reimburse your employees on their W-2s. Since our payroll services don’t automatically reflect employer-sponsored health insurance on W-2s, I suggest performing the manual process.

The first thing you need to know should be the amount you need to include in the form. If you're unsure of it, you can run payroll reports available in the system.

I recommend using the Payroll Item Detail or Payroll Detail Review report to show the breakdown of the amounts by payroll item. Here's how:

Go to the Reports menu.
Hover on Employees & Payroll.
Choose Payroll Item Detail or Payroll Detail Review.
Click the Customize Report button.
Go to the Filters tab.
Under Choose Filter, enter Payroll items in the field box.
Choose Multiple payroll items and select the necessary items.
Hit OK.

Once you already have the necessary information, you can proceed with adding the details manually. Once W-2s are available, you can follow these steps:

Go to the Employees tab and select Payroll Tax Forms & W-2s.
Choose Process Payroll Forms.
Double-click the Annual Form W-2/W-3 Wage and Tax Statement/Transmittal.
Enter the correct year, then click on OK.
Mark the employees you want to view.
Click Review/Edit.
Click the Form W-2 link at the top of the form.
In Box 14, enter the health insurance premiums and amounts.

Additionally, I recommend visiting the following article to learn how to report health insurance using the Enhanced or Standard payroll subscription: Report employer health insurance on W-2s.

Remember that you can always hit the Reply button anytime you have questions about the payroll forms or the payroll data in QuickBooks. Have a great day ahead.

J

jsfreud

Thx for the reply, BUT, this is NOT CLOSE to the procedure I have followed FOR YEARS to get this right!!!

There is a step whereby you add, and then subtract $.01, to make sure the amount in Box 14 is NOT picked up as income on my W-2. No where in your explanation is that shown. Quite frankly, when I see the CORRECT STEPS I will recognize those steps. What you gave to me IS NOT CLOSE!!!

Can YOU PLEASE find someone at Intuit to walk me through the CORRECT STEPS to do what should be a simple, ministerial computer input task.

I had a Case Number last year, That has now expired. Dylan R., who walked me through the steps without a hitch also left NO INSTRUCTIONS on those steps and I made the mistake of not writing those steps down.

I am begging for the right answer here.

What you gave me, however well intentioned, is just flat wrong.

Thank you.

Angelyn_T

I appreciate you joining the thread today, butwin414. I can help you include the code for health insurance 2% shareholder on the W2 form.

You can create a payroll item from your employee's profile to post the insurance accordingly. Ensure that the information and the tax tracking type are accurately entered and aligned with the guidelines provided by the IRS for Box 14 entries.

Here's how:

Open your QuickBooks Desktop (QBDT) file.
Go to the Employees menu, then Employee Center.
Tap on the employee's name.
Click on Payroll Info.
Select Add New from the Additions, Deductions, and Company Contributions section.
Set the item type, then enter the insurance name, then Next.
Fill in the required details such as:
1. Agency for the employee-paid liability.
2. Tax tracking type.
3. Default rate and limit (2%).
Hit Finish when done.
Repeat the same steps for other employees.

You may also review the resources from this article for more options on setting up and tracking S-corp in QBDT: Set up an S-corp medical payroll item for your corporate officers.

Then, use that item to accurately post the amounts to your W2 form when running payroll. You can make adjustments to your prior payroll if necessary.

Once all set, get ready to print or file your forms. I'm adding these materials as your references:

Please know that our doors are open 24/7 for assistance. If you have follow-up questions while preparing your W2 forms in our system, notify me in the comment section below. I'm always here to help.

J

jillydoc

Hi - I need to do the same thing but am using Quickbooks Online Payroll.

Can you post instructions on how it is done? This will fix it for next year, but more importantly how can I add it to this year's Box 14?

J

Jelayca V

Welcome to the Community, @Jilly11.

I understand that you are using QuickBooks Online Payroll and want to set up health insurance to appear on your employee's W-2 Box 14. Here is a step-by-step guide to help you achieve that:

Go to Payroll.
Click the Employees tab and select your employee.
Click Edit from Pay types.
In Additional pay types, select S-corp Owners Health Insurance.
Enter an amount. Or leave it blank, then enter the amount as you run payroll.
Hit Save.

Please note that you can only set up the S-corp item for shareholders that have the same medical plan offered to all other employees.

Please note that you can only set up the S-corp item for shareholders that have the same medical plan offered to all other employees. Set up an S-corp medical payroll item for your corporate officers

Once you set up your S-corp medical insurance item, you can run your payroll with an S-corp medical insurance item on it.

If you have any further questions about setting up health insurance in QBOP, please don't hesitate to contact us anytime. Best regards.

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