2% Share holder Adult Daughter Employee

[Bjorn]

Fact Pattern:

I've received a W2 for the adult daugfher of who works for an S-corp that her father a 2%+ sharehold owns.

Paychex puts the 2% health insurance on her W2 the same way as if she were a shareholder.

The adult daughter is NOT a share holder.

Does this seem correct and if so, what is the best way to trick the software to give her the health insurance as an adjustment?
Mahalo

[veritas]

Wow !

Paychex did something right.

There are attribution rules for stock ownership based on family relationship.

In Lacerte you check a box in the W2 section indicating 2% ownership.

Remember if the daughter could be covered under her husband's group policy she could lose the deduction.