s corp health insurance

[oceanlovin'ea]

I know this has been talked about several times before. BUT this case the health insurance is in the name of the s corporation.

So am I correct in assuming that the health insurance is a deduction to the s corp and there is nothing that needs to be done to the shareholder/employees W-2?

Linda F

[Uncle Sam]

S Corp Health Insurance

You still need to include the premiums paid as taxable salary (but not subject to FICA or Medicare) on the W-2, identify it in Box 14, and back it out as an Adjustment to Gross Income.
A >2% shareholder doesn't get "tax free" the health insurance premiums.

[oceanlovin'ea]

Difference

Then what is the difference between the policy being in the company's name and it being in the shareholder/employee's name?

They are handled in the same way.

Linda F

[les grans]

According to the IRS, they didn't used to be treated the same. Then IRS read the law and realized they should be treated the same. About two years after the rest of us did.