How to add Company Paid Health insurance premiums to W2 for shareholders

Hi there, @mrsbailey.

I'd be delighted to guide you on how to add company-paid health insurance premiums to W2 for your shareholders.

In QuickBooks Payroll, you have the option to create an S-corp medical payroll item. Here's how: 

1. From the Payroll menu, choose Employees.
2. Select your employee.
3. Go to Pay types select Start or Edit.
4. In Additional pay types, select S-corp Owners Health Insurance.
5. Enter an amount. Or leave it blank, then enter the amount as you run payroll.
6. Click Save.

To further understand S-corp medical payroll, read this helpful article: Set up an S-corp medical payroll item for your corporate officers.

I'm also adding this resource that might be useful if you want to run payroll reports in QBO to help you track your business: Run payroll reports in QuickBooks Online Payroll. The same resources give you details on marking a report as a favorite and customizing and printing reports.

Let me know how else I can help you with QuickBooks-Payroll tasks. I'm more than happy to lend a helping hand. Keep safe.

Thank you so much. I did find this info after I posted the question.

The part I still can't figure out is how do I add the annual total to W2s for 2023.

When I try to run payroll dated 12/31/23 with $0 salary, it tells me I can't run a check for zero dollars.

When I try to add a fringe benefit check for 12/31/23, it says I can't because I may incur a tax penalty and that I need to use a closer date.

I'm here to ensure you can run a check for zero dollars and add a fringe benefit check in QuickBooks Online, @mrsbailey. 

We need to create a zero net paycheck to run a check for zero dollars. First, Add an Other Earnings pay type to the employee's profile. Then Set up a retirement plan deductions, and set the deduction amount to zero. Use the Gross up formula to determine the gross pay amount. After that, make sure to complete the steps presented below: 

1. Go to Payroll, then Employees 
2. Click Run payroll.
3. Choose an employee and pay period.
4. Zero out the employee's regular pay or salary.
5. Select the Taxable offset box, and enter the amount determined using the gross-up formula. Make sure that the other pay types are 0.
6. Tap Actions ⋮ then Edit paycheck.
7. In the Employee taxes section, you can zero out Federal Income Tax and State Income Tax. 

Refer to this article that details the process: Create a zero net paycheck.

Moreover, adding a fringe benefit to your employee profile depends on the type of benefit you want to set up. Please know that there are other benefits in QuickBooks Online Payroll that we don't support. You can refer to this article to set up and follow the instructions according to its type: Add fringe benefits to paychecks.

You may also run various payroll reports to view useful info about your business and employees.

Please leave a reply if you have other questions about running checks in QuickBooks. The Community is here to help.

Will this correct the W-2s that have not been filed yet?

Hello, @BethFrisco. 

What specific information are you trying to correct? If you identify the mistake before filing your W-2s, you won't need to create or file a W-2c form but rather rectify the issue in your product and proceed with filing your W-2 forms as usual.

The deadline to file your W-2s electronically is January 30. Check out this article for more information: File your W-2 and W-3 forms. If you use QuickBooks Desktop Payroll Enhanced, see File state W-2 forms. 

Let me know if you have questions. I'm always here to answer them for you. Have a wonderful day!

I just added the health insurance premium by Create another check on 12/29/2023 (last pay check for 2023) and the reports looks good but its not populated to the W2.  How do I "refresh"?  The current W2 Preview is also watermarked with Draft Copy - Do Not File.  Does it just take time to refresh?  I'm expecting the S Corp health insurance premium to be included in Box 1  and 14.

Let's figure out why your S Corp health insurance isn't displayed in boxes 1 and 14 on the W2 form,sungcpas.

You mentioned that you created a paycheck dated 12/29/2023, and the reports look good but did not populate the W2. May I know what pay period you selected for the said check? The pay period you chose could be why it didn't reflect on the form. Here's how to check this:

1. Go to Payroll and choose Employees.
2. Click Paycheck list in the upper right corner below the Run payroll dropdown.
3. Locate the check and view the pay period.

Regarding your other concern, the W2 Preview will be watermarked with "Draft Copy- Do not File" if QuickBooks files them for you. It can't be removed even after refreshing when you view this online since this is just a copy.

Moreover, I'll share this article to give you an overview of some S Corp concerns: S Corporation Compensation and Medical Insurance Issues | Internal Revenue Service.

Here's another link I'll provide to help you understand things that affect the amounts in your employee's W2s: Understand why W-2 box amounts are different.

Comment below if you have additional questions about managing your W2 forms. I'll be around to help you. Take care!