Hello estimator,
S-Corp Health Insurance increases the taxable wages (Federal and State income taxes). With that being said, it will increase the amount in box 1 in your W-2. Also, it'll be reported in Box 14.
If you've used the S-Corp Health Insurance pay item in the employee's profile, there's no need to reclassify it. QuickBooks will automatically do it for you. It will also show and affect your Profit and Loss report.
Let us know if you have any questions. We're happy to help.
