Hello there, @kirstenbrandt.
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 the 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. On 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 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.
Upon giving them a call, your taxes and forms are in order. To help you stay on top of the year-end 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 QuickBooks. I'm always ready to help1.
