I'd be glad to share some insights and help you with your QSEHRA reimbursement, @JBORNC.
Box 1 of the W-2 form includes all taxable wages, tips, and other compensation paid to your employee during the year. However, it doesn't contain elective deferrals such as employee contributions to a section 401(k) or 403(b) plan, except for section 501(c)(18) contributions. For more detailed information, please refer to pages 16-17 of the 2023 General Instructions for Forms W-2 and W-3: https://www.irs.gov/pub/irs-pdf/iw2w3.pdf.
Additionally, Boxes 16 through 19 (not applicable to Forms W-2AS, W-2CM, W-2GU, and W-2VI) contain the total of state and local wages and income tax shown in their corresponding boxes on the Forms W-2 included with this Form W-3. If the Forms W-2 display amounts from more than one state or locality, report them as one sum in the appropriate box on Form W-3. Verify that the amount reported in each box is an accurate total of the Forms W-2. For federal employers reporting income taxes paid to the CNMI under the 5517 agreement, enter the total of CNMI wages on the Forms W-2 in box 16. For reference, please visit page 24 of the same document mentioned above.
Moreover, the tax tracking type will determine how the payroll item appears on tax forms. It's essential to choose the correct tax tracking type to ensure your forms are accurate. You can follow the detailed steps in the "Step 1: Create a company contribution payroll item" section of this article: Report employer health insurance on W-2s. Also, you can consult your accountant for further guidance.
Just in case you want to invite your employees to see and print their own pay stubs and W-2s online, check out this article to know how: Invite your employees to QuickBooks Workforce to see pay stubs and W-2s if you use QuickBooks Deskto...
If you have any further questions or need additional help with your QSEHRA reimbursement, please return to this thread. We're always ready to help.
