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A
ap_fla
January 21, 2022
Question

What to do with health insurance rebate for company shareholder

  • January 21, 2022
  • 1 reply
  • 0 views

I'm an S-corp owner. The company pays for my health insurance premium (which is listed as federal income). The insurance company offers premium reductions for hitting goals, etc. It's often $50. If I put the $50 back into pay do I list it as a bonus or other income? The paycheck is already set up with federal tax taken out for the regular health premium price. Do I need to add Social Security tax and Medicare? Should I repay this monthly when I record the health premium or quarterly or other?

 

Thanks.

1 reply

G
Giovann_G
January 21, 2022

Hello, ap_fla.

 

I can share information in handling health insurance rebates in QuickBooks Desktop.

 

Depending on your preference, you can add it as a bonus if you want to take it personally. You can put it as other income if it's for a business. Also, there's no need to withhold Social Security and Medicare since they're already included in the regular health premium.

 

You can also seek additional assistance from your accountant to guarantee that your books are accurate.

 

In addition, check out the following articles below for more insights in handling health insurance:

 

 

If you have further questions about health insurance, please let me know. I'll keep an eye on your response. Take care and stay safe.

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