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Level 1

Payroll/HSA/health insurance question for S-corps

I am a one person S-corp.

My S-corp contributed the max amount to my HSA in 2018  of $3450.

I have this classified as an Expense in my chart of accounts.

I just ran end of year fringe benefits for HSA and shareholders premium so i could produce W-2.

Do i need to reclassify the above mentioned HSA? Is it affecting my profit and loss?

Thank you

2 Comments 2

Payroll/HSA/health insurance question for S-corps

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. 

Level 15

Payroll/HSA/health insurance question for S-corps

HSA is not Health Insurance. That is a taxable Fringe benefit.

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