S-Corp Owners Health Insurance vs Reimbursement additional payment types. If you are trying to get reimbursed for your health care prem, which bucket to you put under

You're absolutely correct, Chen. We can record the reimbursement as an expense in QuickBooks Online (QBO).

Before we record the reimbursement, let's ensure your employee's insurance is completely set up so it will be included in their paychecks and for in it to reflect in your W2.

Moreover, you can record the reimbursement through check in QBO. Here's how:

1. From left menu, select + New.
2. Select Check.
3. To reimbursed the personal funds, choose a bank account.
4. Select Partner's equity or Owner's equity in the Category column.
5. Enter the amount.
6. Once done, select Save and close.

To record it as an expense, check out this article for more details: Record the reimbursement as an expense.

In addition, if you wish to view your employee taxes and contributions, including your payroll totals, you can visit this article: Create a payroll summary report in QuickBooks.

I'm always around to respond if you have further questions or concerns about the process of recording reimbursement in QBO. Have a good one.

But what's the difference between when to use "S-Corp Owners Health Insurance" vs "Reimbursement" 

Do both of these show up on the W-2? 

Use Case 1: You pay healthcare insurance personally but want to get reimbursed from S-corp to be expensed. 

What are the Payroll setup steps for this? 

Do you use "S-Corp Owners Health Insurance" vs "Reimbursement" for additional payment type?

Does this show up on your W-2 as a requirement to ensure this is deductible? 

Use Case 2: S-Corp Pays for your healthcare insurance and provides it. 

The steps you provide sound like use case 2. 

But what's the difference between when to use "S-Corp Owners Health Insurance" vs "Reimbursement" 

Do both of these show up on the W-2? 

Use Case 1: You pay healthcare insurance personally but want to get reimbursed from S-corp to be expensed. 

What are the Payroll setup steps for this? 

Do you use "S-Corp Owners Health Insurance" vs "Reimbursement" for additional payment type?

Does this show up on your W-2 as a requirement to ensure this is deductible? 

Use Case 2: S-Corp Pays for your healthcare insurance and provides it. 

The steps you provide sound like use case 2. 

I'm seeking answers for Use case 1 under this article: https://www.nolo.com/legal-encyclopedia/deducting-health-insurance-with-s-corporation.html#:~:text=Y...

Let me share more details about using S-Corp Owners Health Insurance and Reimbursement, Chen.

The reimbursement pay type compensates individuals for out-of-pocket expenses incurred during employment. On the other hand, the S-Corp Health Insurance pay type covers accident or health benefits provided to 2% of shareholders of an S-corporation.

Only the S-Corp owner's health insurance is reported on the W-2 form. Reimbursements are tax-exempt and aren't reported on tax forms. For payroll setup, You can use an S-corp medical payroll item and reimbursement item. 

Here's how:

1. Go to the Payroll menu, then Employees.
2. Select your employee.
3. From 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. Select Save.

Health insurance premiums paid by the S-corp are deductible and shown on your W-2 in Box 1 the $ amount in Box 14 is labeled as S CORP OWNER. Please note that reimbursements aren't included in the W-2 reporting.

Yes, the steps shared by the previous agent can be utilized in this scenario. As you're inquiring about case 1, it would be advisable to seek assistance from an accounting expert for the setup to help determine if the S-corp and reimbursement are the most appropriate pay types and ensure accurate tracking and tax compliance. If you don't have one, you can find a professional through this link: Find an accountant.

Once you determine the correct pay types, check this article to guide you in filing your taxes: Pay and file payroll taxes and forms electronically.

We're always here if you need further assistance with your payroll setup. Keep safe.