For an 1120S to deduct the officers Medical (SCorp Medical) expense it must be added to the officer's Box 1 and 14 of the W-2. If one of the officers has payroll withholding for a portion of the cost of the medical premium do you only add the "net" amount to the W-2? The business pays the total cost of the medical premium for both shareholders with more than 5% ownership but one of the shareholders reimburses the business for a share of the cost of the premium. What amount is reported as SCorp Medical on the W-2 the gross or net premium after Payroll withholding? Logically the expense to the business is the net amount after payroll withholding so that I would think is the amount to add to the W-2. Can someone confirm this treatment please.