My top priority is to assist you in setting up medical deductions for multiple owners, @LM62. Let me lend a hand in accomplishing this process.
Once you've set up a standard deduction item in QuickBooks Desktop (QBDT), you can't create another one of the same type. Therefore, when creating additional formats, it's recommended to use the custom setup to adjust and select their appropriate tax tracking.
If your shareholder has a different plan from other employees or doesn't offer an insurance plan, you can use fringe benefits to track your taxes. To set them up correctly, you can follow the steps below.
- Go to Lists, then Payroll Item List.
- Select the Payroll Item dropdown, then New.
- Click the Custom Setup, then Next.
- Pick the Company Contribution, then Next.
- Input the name of the item, then Next.
- Choose the name of the agency (or add it) and the account number.
- In the Tax Tracking Type window:
- Pick SCorp Pd Med Premium for the 2% shareholder who has the same medical insurance plan as all employees.
- Set as Fringe Benefits if the 2% shareholders have a different plan from other employees or do not offer the plan to employees at all.
- Select Next three times, then Finish.
Once done, you can assign them to their designated owner's profile. To do so, here's how:
- Navigate to Employees, then Employee Center.
- Find your shareholder's name and then select Payroll Info.
- Add your S-corp payroll item, in the section for Additions, Deductions, and Company Contributions, under Item Name,
- Enter the amount per paycheck, from the Amount column.
- In the limit field, input the total premiums for the whole year.
- Select OK.
For reference and more details, please check out this article: Set up an S-corp medical payroll item for your corporate officers.
Additionally, I recommend to collaborate with your accountant to ensure accurate tracking for this deduction.
If you want to view your previous payroll tax payments and forms using QBDT, you can check out this article to learn how: View your previously filed tax forms and payments.
Feel free to comment below if you have other concerns about setting up medical deductions in your QBDT company file. I'll make sure to help you out anytime.
