Employees and payroll
Let me clarify things out, vvicky72.
As mentioned in this thread, you won't select the company HSA contribution for shareholder-employees who own 2% or more of an S corporation. This benefit is taxable at the federal level and in some states.
You need to set up the S-Corp pay type on your employee and enter the amount from there. This will be reported on the W-2: Box 1 and $ amount in box 14 with “S CORP OWNER”.
Let me show you how:
- Go to Workers from the left navigation bar, then choose Employees.
- Click the employee to open the profile.
- Go to the Employee details tab, then click the edit (pencil) icon beside Pay.
- Choose How much do you pay, then click + Add additional pay types.
- Click Even more ways to pay.
- Mark S-Corp Owners Health Insurance, and enter the amount.
- Select Done.
After that, you can then run payroll that includes the S-Corp contributions.
I've added this article for additional information: Set up and record S-Corp health insurance. it provides three ways to do enter this pay type in QuickBooks Online.
Don't hesitate to get in touch with me here anytime you need a helping hand. I always have your back.
