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How To Setup 2% Shareholder Health Insurance

This article explains how to code your S-Corp officers health insurance contributions for tax purposes

If your business is contributing to health insurance premiums for your 2% S-Corp officers, the officers will need to be coded in the system for proper taxation. 

To properly code your 2% Shareholders payroll you first need to setup the adjustment in the system:

  • Select Settings from the menu
  • Select Payroll Settings
  • Select Add New
  • Enter the Custom Adjustment Label as 2% Shareholder Health Insurance
  • Select the Type as 2% Owner Medical
  • Enter a Description (in example, 2% shareholder health insurance)
  • Select Save

Now you will need to setup the adjustment in your payroll batch:

  • Select Payroll from the menu
  • Select the payroll you need to edit
  • Select the officer you need to edit
  • Select the three dots to the right of the officers name
  • Select Payroll Adjustments
  • Under the 2% shareholder health insurance item enter the amount of the premium paid for the year
  • Select Save