How do you set up the Employee Wage/Withholding screen for health insurance premiums paid to S corporation officers in EasyACCT?
How to set up the Employee Wage/Withholding screen
In the Employee Wage/Withholding screen:
- In the GP#- Officer Health Ins. section, select boxes 1 and FWT and use the W-2 code box 14.
- In the WH#- Officer Health Ins. section, don't select any boxes.
- This takes the health insurance out of net pay so it doesn't increase the dollar amount of the check.
- In the Contributions/Deductions tab, you can set up health insurance for automatic deduction; if there's a company portion, you can set it up as a match.
According to the IRS's S Corporation Compensation and Medical Insurance Issues, this is the treatment only if payments are made under a plan.
Verify the tax treatment and payment plan to make sure this is the correct setup.