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Level 2

S-Corp 2% Health Insurance that is fully taxed

I need to make a year end entry for S-Corp health insurance that is fully taxable.  I know I set it up as a fringe benefit instead of the "S Corp Owner Health Insurance" , but will it show on the W2 as needed?  I noticed the instructions state: Intuit Full Service Payroll and Quickbooks Online Full Service Payroll customers: Our system currently does not support full taxability. 

Is there a quick way to get this in for year end and be accurate?  Why would it be available in Desktop and not Online Payroll?

3 Comments 3
QuickBooks Team

S-Corp 2% Health Insurance that is fully taxed

Hello, @tarnzen.


In QuickBooks Online (QBO), you can set up and record your S-Corp Insurance items. You can do it by going to your employee’s profile. Then, go to the You can also pay section to check for the S-Corp 2% Health Insurance pay type. See this supported pay types and deductions explained article for more details.


However, QBO does not support full taxability yet. QuickBooks Desktop has more payroll features than QuickBooks Online. I can see that this would be a great addition to current features that we have, so I'll take note of your feedback. For now, you can visit the QuickBooks Blog to check for new updates and features that we have. 


Reach us back if you still have questions or if you need further guidance with your account. We're always here to assist.

Level 2

S-Corp 2% Health Insurance that is fully taxed

So how can have our taxes be correct if it's required to report and pay a certain way but we are unable to?  What's the best solution if I am using Online Payroll?


S-Corp 2% Health Insurance that is fully taxed

Thank you for getting back, @tarnzen.


Our Payroll Support can assist you with this and ensure your tax calculation are correct. Since we can't view your account in a public forum, our support can help you navigate and get this S-Corp plan recorded. 


I'll include this article for more details about recording S-Corp in QBO: Set up and record S-Corp health insurance.


Let me know how it goes. I want to ensure you get all the help you need. I'm here if you need anything else. Have a good one.

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