22 Dec Health Insurance for More than 2% Shareholder of an S Corporation
Amounts paid for health insurance for more than 2% shareholder of an S Corporation should be reported to Digit Payroll by the end of the year. These amounts should be included in the shareholder’s Form W-2 . This amount is included as income for federal income tax purposes but may be excluded from Social Security, Medicare and FUTA taxes.
Make sure the shareholder alerts his/her tax preparer of this inclusion, since a deduction for health insurance premiums may be made on page one of the shareholder’s individual income tax return.