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Frequent Explorer *

How to add S-corp owner's health and life insurance to wages

I have just know found out that I have to add health insurance premiums paid for my 2 s-corp owners and each other's life insurance premiums to their wages so that they appear on their W-2's.  I am panicking because I don't know how to do this and I don't want to delay processing everyone's W-2's while I try to find this out.  Can someone please give me a "crash-course" on the simplest way to do this?

Solved
Best answer 12-10-2018

Accepted Solutions
QuickBooks Team

Hi ljkentucky64, Let me help you out with this. Setting u...

Hi ljkentucky64,

Let me help you out with this.

Setting up an S-corp payroll item is easy. You can check out this support article for the step-by-step instructions:

https://community.intuit.com/articles/1436944-how-to-set-up-s-corporation-medical-payroll-items

Reach out to me if there's any way I can be of help.

23 Comments
QuickBooks Team

Hi ljkentucky64, Let me help you out with this. Setting u...

Hi ljkentucky64,

Let me help you out with this.

Setting up an S-corp payroll item is easy. You can check out this support article for the step-by-step instructions:

https://community.intuit.com/articles/1436944-how-to-set-up-s-corporation-medical-payroll-items

Reach out to me if there's any way I can be of help.

Frequent Explorer *

Thanks for the reply!  I would be using the year-end meth...

Thanks for the reply!  I would be using the year-end method - that's what they've done in the past.  I think (?) I understand setting up the actual payroll item  I'm not sure about  creating the zero amount check.  I assume I would start at unscheduled payroll.  How do I actually create the check?  How do I know that it will flow through to Box 14 on W-2?  Also the former CPA rep that handled this before said that the life insurance premium paid by one partner has to be added to the other partner's wage also.  Is this handled the same way using the same payroll item or a different one?  or is it combined with the health insurance?  Thanks so much for any help!
Frequent Explorer *

additional help needed

additional help needed
QuickBooks Team

Hi @ljkentucky64, The tax tracking type would help us de...

Hi @ljkentucky64,

The tax tracking type would help us determine the amount that will be posted on box 14 of your W-2. If you prefer, you can try calling our payroll support team to assist your further. They have the needed tools to help troubleshoot this for you. Here's how to reach them:

<a rel="nofollow" target="_blank" href="https://payroll.intuit.com/support/contact/index.jsp?infosrc=qs&service=16">https://payroll.intuit.c...>

Click Payroll > View Contact Info.

Thank you.
Not applicable

Is it possible to populate W-2 box 14 with the 2% stockho...

Is it possible to populate W-2 box 14 with the 2% stockholder health insurance premiums from within QuickBooks, or do I need to use another service?  Support says it can't be done, but that's hard to believe.
Frequent Explorer *

I accomplished this by creating a zero dollar check at th...

I accomplished this by creating a zero dollar check at the end of the year.  This grossed up the wages to reflect the premiums and put the information in Box 14.   Check out <a rel="nofollow" target="_blank" href="https://www.accountexnetwork.com/blog/2015/01/shareholder-health-insurance/">https://www.accountexne...> for step-by-step instructions.
Not applicable

Exactly what does it say in box 14?  Does it work for 201...

Exactly what does it say in box 14?  Does it work for 2017 W-2's?
Frequent Explorer *

It said "SCorp MP" then the amount.  I also set a separat...

It said "SCorp MP" then the amount.  I also set a separate one up for life insurance premiums and it said "SCorp LI" then the amount.  I haven't done W-2's yet but I certainly expect it to work.
Not applicable

Thanks!

Thanks!
Not applicable

How do you do this on QuickBooks Online version?  The art...

How do you do this on QuickBooks Online version?  The article referenced by @ljkentucky64, is from 2015 using a desktop version.
Established Community Backer ***

@ljkentucky64, see the article below for help. https://co...

Not applicable

Re: I accomplished this by creating a zero dollar check at th...

Is there a way to outline the directions to do this?

I tried the link but couldn't find any help.

thanks in advance!

Pat

Moderator

Re: I accomplished this by creating a zero dollar check at th...

I can help you outline the steps on how to set up S-Corp Owner's Health Insurance, Pat.

 

The steps on the article stated above are for QuickBooks Desktop Payroll. If you're using QuickBooks Online Payroll, please follow the steps I've laid out below:

  1. Choose Workers on the left, then select Employees.
  2. Select the employee's name
  3. Click the edit (pencil) icon beside Pay.
  4. In section 3, select the edit (pencil) icon.
  5. Maximize Even more ways to pay employee, then select S-Corp Owner's Insurance.
  6. You can add the Recurring amount or leave it blank.
  7. Select Done (see screenshot below).

 

image.png

 

Once you run payroll, you will have the option to enter the S-Corp amount.

 

To learn more about S-Corp Owner's Health Insurance, check this article: Set up S-Corp Owner's Health Insurance.

 

That's it. If you've got more questions, don't hesitate to drop a comment below. I'll be here to help.

Not applicable

Re: I accomplished this by creating a zero dollar check at th...

I switched payroll providers mid-way through the year, it allowed me to enter past paid taxes to the fed and state, but how do I enter the previously paid S-Corp Owners Health Insurance premiums so they will show on the W2? It never gave me that option. My CPA says to just add it when I create the W2, but that seems like a work-around and I'd like to do it properly. Thanks in advance for your help!

QuickBooks Team

Re: I accomplished this by creating a zero dollar check at th...

Thanks for joining in this thread, jwpops.


I can help ensure your S-Corp Owners Health Insurance premium is properly recorded, so it will be reported on the W-2 form.


If you’re using the desktop version, you’ll need to first create the payroll item and enter a liability adjustment to properly record the premium. 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:

 

  1. Go to List at the top menu bar, and choose Payroll Item List.
  2. Click on the drop-down for Payroll item, and select New.
  3. Choose Custom Setup, click on Next.
  4. Select Company Contribution, click on Next.
  5. Enter a name, such as S-Corp Medical Insurance and select Next.
  6. Leave the fields as they are, and choose Next.
  7. Click on the drop-down for Tax tracking type, and select SCorp Pd Med Premium.
  8. Click on Next.
  9. In the Taxes page, do not make any changes and click on Next.
  10. In the Calculate based on quantity, leave the default set to Neither and click on Next.
  11. In the Default rate and limit leave the fields as blank, click Finish.

For more information about setting up the payroll item, click on this link: S-corporation medical payroll item.


Once done, perform a liability adjustment. This is to ensure the premium is reported on the W-2.


Once you've recorded the payroll information in QuickBooks Online Payroll, entering additional transactions in the program is not an option. To keep your taxes and forms straight, I recommend contacting our Payroll Support Team for help in performing the payroll correction.

 

Upong giving them a call, your taxes and forms are in order. To help you stay on top of the year-end’s taxes and forms, I’m adding a link that can assist in preparing the payroll data: Year-end Checklist.

 

Please let me know if you have additional questions about QBO. I'm always ready to help. Have a great rest of your day.

 

 

Frequent Explorer **

Re: I accomplished this by creating a zero dollar check at th...

Hello there! This is exactly what I am trying to do however the link takes me to an arrival about sales tax?????

Not applicable

Re: I accomplished this by creating a zero dollar check at th...

I did this last year but cannot for the life of me remember how. Your instructions are not coming up when I click the link. Is it possible it was moved or the link is incorrect in some way? I have everything set up since I did it last year, just need to create the zero dollar checks.

QuickBooks Team

Re: I accomplished this by creating a zero dollar check at th...

Hello Kim23, jackiebell8,

 

Welcome to the Community. I'd be delighted to help with your concern about the link.

 

I'm currently checking the thread and found out the link shared by @ljkentucky routes to sales tax. Our peer user @Lexiesmemere added an article about creating a zero balance on a paycheck in QuickBooks Desktop.

 

I'm adding the article below for your reference: Apply S Corp Medical at year end.

 

Please keep in touch with me here for any of your QuickBooks needs. The Community is always here to lend a hand.
 

 

Not applicable

Re: I accomplished this by creating a zero dollar check at th...

How do we set up the S Corp >2% shareholder medical insurance in QuickBooks OnLine?

QuickBooks Team

Re: I accomplished this by creating a zero dollar check at th...

Good day, @KeithBoyer.

 

Thank you for joining this thread. I can help you set up the S Corp >2% shareholder medical insurance in QuickBooks Online (QBO).

  1. Go to Workers from the left menu.
  2. Select Employees.
  3. Click the employee's name.
  4. Select edit (pencil) icon beside Pay.
  5. In section 3, select the edit (pencil) icon.
  6. Maximize Even more ways to pay employee, then select S-Corp Owner's Insurance.
  7. You have an option to specify a recurring amount.
  8. Select Done.

 

After adding the payroll item, you should already have the S-Corp Ins field.

 

Check out the Set up S-Corp Owner's Health Insurance article and go to QuickBooks Online Payroll section for more insight.

 

That should do it, KeithBoyer. Click the "Reply" button if you have additional questions about payroll. Please know that I'm still here to help you. Have a wonderful day ahead!

Not applicable

Re: How to add S-corp owner's health and life insurance to wages

Sorry but I have been trying to get an answer I keep asking and I only get information for S Corp, we change n 2018 From S corporation to Corporation, the state gave us penalties for not paying an estimated tax we always faithfully pay our weekly, monthly, and quarterly, yearly Taxes, so how does quickbooks give you estimated taxes for corporation? I dont see any, I have been thinkering and found that on the company file there is a drop down window for corporation, when I cliked on it, it reads that t will change all my tax forms, "WOW Scary so what can I do, because I don't see where these taxes are being generated from. hopefully someone can help, I contact qbks and they say they only deal with payroll taxes.. SAY HUH!

 

:(

QuickBooks Team

Re: How to add S-corp owner's health and life insurance to wages

Thanks for joining us here in the Intuit Community, @Maricelhe.

 

You can change your entity filing type in QuickBooks, however you'll lose all the current data on file. I suggest creating a back up of your data, then restore it to a new company file. This will keep the old company for tax forms since your EIN was not changed, only the forms you file. 

 

To open a new QuickBooks Desktop company file:

  1. Go to your File menu.
  2. Select New Company.
  3. From there, you can restore the file and set up the corporation account.

I've added this article for your guidance with the solution above: Create QuickBooks Desktop Company File Overview.

 

The taxes being generated on your S corporation company are coming from the payroll run through the system. If you need to access your payroll tax forms and print them, check this out for the detailed steps: Process, Print, and Save QuickBooks Desktop Payroll Tax Forms.

 

The information I shared above should help you clarify things out.

 

Let me know if you have additional questions about getting the account change to corporation and I'd be glad to help you further.

Community Explorer **

Re: How to add S-corp owner's health and life insurance to wages

I am going to try and thank you so much I have been asking and trying because I believed that there has to be another way to go, and my accountant forgot to mention this to us when he made changes to our businesses filing status. again thank you I will let you know how it went. 

 

Thanks 

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