617.657.0057FAX:617-376-2600
Employee Login Employer Login
Granite PayrollGranite Payroll
  • Contact
  • About Us
  • Services
    • Payroll Services
    • Employee Self Service
    • Tax Services
    • 401k Administration
    • Time and Attendance
    • HR411 Complete
    • Workers’ Compensation
  • Resources
  • Calendar
  • Blog +
    • Latest News

        Importance of Small Business Tax Planning

        WHY IS TAX PLANNING FOR SMALL BUSINESSES SO IMPORTANT? Simple! Reduce the Read More...

        Posted on July 12, 2016
        Common Mistakes Small Business Owners Should Avoid

        Running a small business isn’t easy. For many owners, you’re the chief, Read More...

        Posted on June 27, 2016
        Summertime Tax Tips

        Summer is a great time to start tax planning even though it’s Read More...

        Posted on June 15, 2016
        The Small Business Healthcare Tax Credit: Find Out if You’re Eligible

        If you are a small employer, you may not know about the small Read More...

        Posted on May 25, 2016
: 617.657.0057
Granite PayrollGranite Payroll
  • Contact
  • About Us
  • Services
    • Payroll Services
    • Employee Self Service
    • Tax Services
    • 401k Administration
    • Time and Attendance
    • HR411 Complete
    • Workers’ Compensation
  • Resources
  • Calendar
  • Blog +
    • Latest News

        Importance of Small Business Tax Planning

        WHY IS TAX PLANNING FOR SMALL BUSINESSES SO IMPORTANT? Simple! Reduce the Read More...

        Posted on July 12, 2016
        Common Mistakes Small Business Owners Should Avoid

        Running a small business isn’t easy. For many owners, you’re the chief, Read More...

        Posted on June 27, 2016
        Summertime Tax Tips

        Summer is a great time to start tax planning even though it’s Read More...

        Posted on June 15, 2016
        The Small Business Healthcare Tax Credit: Find Out if You’re Eligible

        If you are a small employer, you may not know about the small Read More...

        Posted on May 25, 2016
04 Dec

Health Insurance and W-2 Reporting for Shareholders of S-Corporations

As the end of 2015 approaches, it is always a good idea to review the filing and reporting requirements for your company’s W-2s. The IRS requirements are constantly changing, so it is always good practice to consult with your CPA to make sure all new requirements are addressed.

Health Insurance and W-2 Reporting for Shareholders of S-CorporationsOne of the most common mistakes is the handling of insurance premiums related to shareholders of S-Corporations. If a greater than 2% shareholder in an S-Corporation has health or accident insurance premiums, these costs are reported as part of the shareholder’s/employee’s wages for the calendar year. These wages are not subject to FICA (Social Security & Medicare) or FUTA (Federal Unemployment) taxes. In other words, these wages are only considered “Box 1 Wages”. They will not show up in Box 3 or 5 subject to either of the FICA taxes. Also, the amounts in Box 1 attributable to insurance premiums are then broken out in Box 14 of the W-2.

The main benefit the shareholder/employee receives from reporting the insurance premiums on his or her W-2 is the option to take the health insurance premiums as a deduction to gross income on line 29 of page one of the shareholder’s 1040.

You can read more about this here: S Corporation Compensation and Medical Insurance Issues.

Granite Online is a powerful web-based payroll solution designed to streamline payroll operations while enhancing flexibility, security, and control. This dynamic product enables you to maintain control of your payroll data while utilizing our payroll expertise. With 24/7 convenience, Granite Online allows instantaneous e-transfers, printing of live checks and payroll reports, and tracking of human resource data. This easy-to-use payroll product lets you know what’s happening in real-time, so you can minimize costly productivity issues. Whether your company is large or small, local or nationwide, our payroll specialists are at your service.

Recent Posts

  • Importance of Small Business Tax Planning
  • Common Mistakes Small Business Owners Should Avoid
  • Summertime Tax Tips
  • The Small Business Healthcare Tax Credit: Find Out if You’re Eligible
  • Sales Tax – The Necessary Evil in the Daily Life of Business Owners

Tweets

Posts

  • Importance of Small Business Tax Planning
  • Common Mistakes Small Business Owners Should Avoid
  • Summertime Tax Tips
  • The Small Business Healthcare Tax Credit: Find Out if You’re Eligible
  • Sales Tax – The Necessary Evil in the Daily Life of Business Owners

CONTACT US

Copyright © 2020 Granite Payroll | 176 Granite Street Quincy, MA | Site by
  • Privacy Policy
  • 617-657-0057