Hi there, @sberkman1.
There are two ways to set up S-corporation (S-Corp) medical payroll items in QuickBooks Desktop. It depends on the insurance program used in your company. To guide you which option to select, please refer to the following requirements, as well as the taxes affected per option:
- If the shareholders participate in the same insurance program that is offered to all other employees, the cost of their premiums will be taxable only to FIT and SIT.
- If the shareholders participate in a separate plan or do not offer the plan to their employees, then the cost of their premiums will be taxable to FIT, FICA, FUTA, SIT, SDI, and SUI.
You may use the following article about how to create the payroll item that applies to your corporation: Set up S-Corp.
If you need to change the selections in the Taxes screen, I'd suggest consulting your accountant or tax advisor for assistance. You can also click the Default button to revert QuickBooks automatic settings.
Thank you for dropping by. As always, feel free to click the Reply button if you have any additional questions. I'll be happy to help you out.
