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

@ljkentucky64, see the article below for help.

https://community.intuit.com/articles/1437207-apply-s-corp-medical-at-year-end-for-corporate-officer...

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

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).

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.

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!

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.

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

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.

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.
 

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

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!

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!

:(

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.

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 

Hi ShiellaGraceA,

I appreciate your great response!  I have set up the payroll liability and it works great.  In my situation, the company pays 100% of the insurance premium and it is in the Box 14 of the W-2.

However, how is the insurance premium tracked?  Is it a company expense and a payroll liability?  How should it appear on the P&L?

Thanks!!