I'm more than happy to help you with your question about the medical insurance reimbursement for S-Corp Officer. Let's work together and double-check the set up of the payroll item created. I suggest using the EZ Setup when setting up an S-corporation medical payroll item. This tool will choose the taxation of your payroll item for you. Here's how to set up the payroll item based on your employee packages:
If you're a 2% shareholder and offer the same medical insurance plan to all your employees
Go to the List menu and then Payroll Item List.
Click on the Payroll Item drop-down arrow and select New.
Press EZ Setup and then Next.
Choose Insurance Benefitsand then Next.
Pick S Corp Medicaland then Next untilFinish.
If the 2%-shareholders have a different plan from the other employees or do not offer the plan to their employees at all
Go through steps 1-3 from above.
Hit Other Additions and then Next.
Press Taxable fringe benefits and then Next until Finish.
Before you go, you can also learn more about reimbursements through these links below. (The second article has QuickBooks Desktop information in the middle of the thread)