SE Health Insurance: The IRS wants SE Health Insurance for a 2% shareholder to be on a W2. An increase to wages, and no change on Fica and Medicare Wages for non discrimatory plans. For discrimatory plans, the wage increase is subject to FICA taxes.
The last payroll, on QB online, I informed Payroll Online of the adjustment. It took me two hours to explain the adjustment to Intuit. I told Intuit to increase wages for the cost of the health insurance for the officer. That is the debit, the credit goes as SE Health Insurance, or Insurance - SE Health, or an account created by Intuit. I really do not care what account they use. However, Intuit made the debit correctly, but not the credit. The credit, which normally shows up as a negative on Box 14 of the W2, is not being reported as a credit, or a negative. Recall, everyone about double entry bookkeeping. If there is a debit, there must be a credit, or negative.
What Intuit Payroll did was create a debit without creating a credit. I know this, because my client cannot export the payroll journal entry to his books, on the desktop version. Yes, he uses the desktop for general
ledger purposes, but is forced to use QB Online Payroll.
I called Payroll to tell them the mistake. They concluded that the mistake would be corrected, and an email to my client would be sent. That was over a week ago, and nothing was sent to the email.
I am going to lose my client over this. Over Intuit's mistake. By creating only a debit entry. I told my client that I can do a journal entry, without his wages. The client said NO, I am to blame. Why blame me, and not Intuit?
What to do?
