I think it has been discussed many times before in this forum that health insurance premiums paid by Scorp to a 2% owner has to be added on his W-2.
My question is: Does it have to be reported in the payroll check stubs too? For example, monthly salary of the 2% owner is $3,000. Health insurance premiums of the month is $600.
Gross pay: $3,600 ($3,000 regular salary + $600 health premium)
Deductions:
Fed WH: $300 (let's say this is the amount from the tax withholding table)
Soc Sec: $186
Medicare: $43.5
State WH: $100 (let's say this is the amount from the tax withholding table)
Health Insurance: $600
--------------------------
Total deduction: $1,229.50
Net pay = $2,370.50
Is this the correct way to report the payroll on his paycheck stub?
My question is: Does it have to be reported in the payroll check stubs too? For example, monthly salary of the 2% owner is $3,000. Health insurance premiums of the month is $600.
Gross pay: $3,600 ($3,000 regular salary + $600 health premium)
Deductions:
Fed WH: $300 (let's say this is the amount from the tax withholding table)
Soc Sec: $186
Medicare: $43.5
State WH: $100 (let's say this is the amount from the tax withholding table)
Health Insurance: $600
--------------------------
Total deduction: $1,229.50
Net pay = $2,370.50
Is this the correct way to report the payroll on his paycheck stub?
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