If the Company already paid, you are describing a taxable fringe benefit. You would list this on a Paycheck that has Gross Pay on it, for there to be something from which the Income Tax deduction can be deducted. You cannot put it By Itself, unless you are explaining a reimbursement entry. If the company paid it, already, there is no putting this By Itself. If this is a Reimbursment process, they have this as a Taxable Gross, and they take home Less, because the income tax withholding is deducted.
If you provide health insurance to employees who own more than 2% of stock in your S Corp, the premiums are tax deductible for your company. And, the premium amounts are taxable for your employees.
You must include the amount of the S Corp shareholder health insurance premium in the employee’s taxable wages.
So, what is the 2% shareholder health insurance taxability? Contributions made to a shareholder-employee’s health benefits plan are subject to state and fed income tax withholding. However, these contributions are not subject to Social Security and Medicare taxes and are reported as exempt for FUTA.