Howto correctly set up SCorp Pd Med Premium pay type (the company payment of 2% Shareholder Owner health insurance premiums-reimbursement) so it is not FICA taxable?

Forum|Forum|1 year ago
September 3, 2024
4 replies
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Candice14

Level 8

Good morning, @natasha@treasure.

I appreciate you coming here to the Community with your question about setting up S-Corp Medical Premium.

S corporation medical insurance is a noncash fringe benefit provided to shareholders owning 2% or more of the corporation.

You can set up an S-Corp Medical payroll item in QuickBooks Payroll, and report them on your employees paychecks and tax forms. Review the guide below for all the details and steps to help get this squared away:

Set up an S-Corp Medical payroll item for your corporate officers

Feel free to reach back out if you have any further questions. We're always here to help!

gdirienz

I have gone through the "set up an s-corp medical payroll item for your corporate officers " article

Steps # 1 and 2 are complete

Here is where my confusion lies

Create net zero paycheck

#4 S-Corp Adjustment item. I don't see this in my payroll item dropdown. Do I set up a payroll item for this?

If so, is this an addition or company contribution? Is this tracked on tax forms

#7 Employee paid tax advance item. Do I also need to set this up in payroll items? If so what selections do I make when creating this?

Thanks

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