Payments of medical insurance premiums for S-Corp shareholder-employees who own more than 2% of the company stock should be treated as additional compensation. Add the amount of the preiums paid to the compensation deducted on page 1, line 7 ("Compensation of officers") of your corporate tax return. The premiums are then reported on your W-2. Note that although these premiums are treated as additional compensation, they are NOT subject to FICA or FUTA. They are however subject to federal and state withholding.You could also issue a 1099 instead of a W-2. If you do that, make sure that when you pick up the income up on your personal tax return that you don't compute self-employment tax on the amount.
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra