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Health Insurance Premiums Paid By Your S Corporation

If you operate your business as an S Corporation (or an LLC electing to be taxed as an S Corporation), please read on......

Health Insurance Premiums must be reported on the owner's 2022 annual employee W2 (wage reporting) form. (Reporting is not required for all employees: only for an owner who owns more than 2% of the business). You should reach out to your payroll service as soon as possible to find out their reporting deadlines.

HEALTH INSURANCE PREMIUMS....... Premiums paid by your S corporation on behalf of you and your spouse (and family) are included on your employee W2. Report amounts that will be paid in 2022 to the payroll service. Tell the payroll service the payment is for "health insurance premiums for a more than 2% shareholder." This will be included as taxable income in box 1 of the w2 and also reported as a memo item in box 14. No income tax withholding or payroll tax withholding is required.

If you have questions, please let me know.

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