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L
LogineticsLLC
January 22, 2023
Question

W2 items in Box 14. Company paid or not?

  • January 22, 2023
  • 1 reply
  • 0 views

My wife and I are self-employed.  We're an LLC / S.

Our company pays the monthly bill for health insurance which covers both of us.  Let's say it's $100 / month ($1200 annually). The monthly payroll pre-tax employee contribution for the premium is half the entire amount.  Paid monthly, we each pay $50.

 

Perhaps I'm confused, but it would seem our company is not actually providing employer-paid health care.  So what should we see in the W2 box 14 items?   Using the above example, we're each showing $600 for the year as Medical Insurance on our W2. 

 

And when I'm using TurboTax business, upon QuickBooks import, it notes that the company spent $1200 on insurance last year and asks how much the company spent.  That amount would seem to be zero since we paid it.

1 reply

A
AileneA
January 22, 2023

Hello, LogineticsLLC.

 

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

 

Pre-tax insurance plans decrease the amounts in Boxes 1, 3, and 5 because they aren't subject to Federal Withholding, Social Security, or Medicare. Pre-tax insurance plans don't report in Boxes 12 or 14 on the W-2. 

 

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

 

 

 

Let me also share these links that you can read to learn more about W-2s and how to file and print it:

 

 

Also, to know more about the W2 form, check out this article: Get answers to your W-2 questions. It includes a list of frequently asked questions about the form with links to address the different payroll services.

 

Don't hesitate to drop a comment below if you have other questions. I'm more than happy to help. Take care!

L
LogineticsLLCAuthor
January 24, 2023

Is the plan in my example, where it's paid pre-tax but with a 100% employee contribution, considered a Pre-tax insurance plan?

M
MadelynC
January 24, 2023

I’ve got you covered, @LogineticsLLC. 


Yes, you’re correct. Health insurance premiums, including health savings plans, are pre-tax deductions. This assumes that your business can offer health insurance to your employees. 


You can read this reference to determine and get more insights about your payroll deductions and reporting: The quick and easy guide to payroll deduction.


I’m also adding these resources that provide useful information on how to manage your payroll and financials efficiently, stay organized and compliant:

 


You can always get back to this thread if you have additional questions or concerns about your payroll setup. I’ll be here anytime to help. Take care!

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