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Join nowDoes anyone have instructions on how to add the 2% S Corp health insurance premiums paid on one check at year end.
We are able to do a net $0 check in QBO, but I am not finding how to do this in QB desktop?
Can anyone assist?
Hi there, @dmcintire33.
I'm happy to lend a hand with recording the 2% S Corp health insurance premiums.
Since you're using QuickBooks Desktop, you'll need to create the payroll item and enter a liability adjustment to record the premium correctly. If you are a 2% shareholder and offer the same medical insurance plan to all your employees, follow these steps to set up the payroll item.
To create a payroll item:
For more information about setting up the payroll item, click on this link: S-corporation medical payroll item.
Once done, you can perform a liability adjustment. This is to ensure the premium is reported on the W-2.
I also wanted to share a similar thread where users are helping each other with this same question. There is a lot of helpful information within it: https://quickbooks.intuit.com/learn-support/en-us/employees-and-payroll/how-to-add-s-corp-owner-s-he...
I'm here if you have any questions or concerns. Take care!
Thank you for your assistance. I have followed the instructions provided, but when I go to run the W-2s, the additional amount does not show up as part of the State Wages. It does show up as part of the Federal wages. What am I doing wrong?
I appreciate you for coming back to the thread and adding extra clarification about your concern, dmcintire33. Let me discuss extra details on how W-2s and payroll item works in QuickBooks Desktop. Then, I'll ensure you'll be pointed to the right person to assist you further on this matter.
The information that appears on the W-2s is based on the payroll item you selected. Then, the taxes that are always affected on the payroll item are determined by the tax tracking type you've selected when the time you create the item. That said, adding S Corp 2% Health Insurance is subject to federal withholding. That is why the additional amount is not included in the State Wage. I've attached a screenshot below for visual reference.
On the other hand, you can consult your accountant to ask for additional help. They can provide you with complete details on how to properly handle the S Corp 2% Health Insurance so it'll post on the correct taxes.
Lastly, you may refer to this article to see various details about W-2 so you’re prepared for tax season and file this accurately: How to Understand and Fill Out a W2.
Always remember that you can always hit the Reply button anytime you have questions about the payroll forms or the payroll data in QuickBooks. I'm always here to help, dmcintire33. Have a great day ahead.
I need to create a payroll check that only records the 2% health insurance. I setup the payroll items as discussed earlier and created a check that just contains the 2% health insurance a message appears:
"Unable to create a paycheck when there are not earnings or additions items or the earning and additions are all zero. To create this paycheck first add an earnings or addition item with a non-zero amount".
This shareholder is currently not taking compensation but does have 2% medical insurance that should be reported.
Thanks for taking the time to share your concern here in the Community, RJ-16.
Allow me to help you create a payroll check that records your shareholders' medical insurance items. To do this, we'll need to generate a zero net paycheck since your shareholders have a different plan than your other employees, and they won't receive payment for the remainder of the calendar year.
Here's how to do it:
For more detailed information, you can refer to this article: Set up an S-corp medical payroll item for your corporate officers.
If you need assistance running payroll summary reports in QuickBooks in the future, here's a helpful guide: Create a payroll summary report in QuickBooks.
Please feel free to add a comment below if you require further assistance with navigating QuickBooks Desktop Payroll. I'm here to provide any additional support you may need. Stay safe, and take care!
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