WebHealth Insurance Premiums. Health insurance premiums paid on behalf of greater than 2% shareholders in S-corporations must be reported as wages on the shareholder’s W-2. The premiums are not subject to Social Security, Medicare or unemployment taxes if the health insurance is provided under a non-discriminatory plan provided to employees.

S Corporations Internal Revenue Service - IRS tax forms

Web25 May 2024 · Here’s a brief rundown of the tax treatment of fringe benefits for individuals who own 2% or more of an S corporation. Taxable Items. The following benefits typically … WebTreating Medical Insurance Premiums as Wages. Health and accident insurance premiums paid on behalf of a greater than 2-percent S corporation shareholder-employee are … fjkba12-100

1120-US: Allocation of health / medical insurance premiums to a …

WebFirst, if the S corporation pays the cost of health insurance to cover the owner, the owner does not get this coverage as a tax-free fringe benefit. Second, even though the owner does not get tax-free fringe benefits from corporate-paid health insurance, the owner wants the S corporation to pay for the insurance. WebA 2% shareholder is defined in section 1372 (b) as a person who owns directly or constructively under section 318 on any day of the S corporation's tax year more than 2% … WebThe good news is that individual disability income insurance premiums can be deducted by an S Corporation. This is because shareholders with more than 2% of the shares are … fjjzd