If you are an S-Corporation and the owner gets paid a W-2 wage through payroll, you need to notify your payroll company about any health insurance premiums that the company might have paid on your behalf that are not already being reported through payroll. Sounds complicated but it’s really not….
Are you an S-Corp? Yes = next step; No = stop reading this email and carry on with your day.
Did you as the owner get paid a wage through payroll? Yes = next step; No = stop reading this email and use the extra time to take a brisk walk to re-energize your brain.
Did the company pay your health insurance premiums? Yes = next step; No = stop reading this email and do something fun instead.
Are your health insurance premiums showing on your paystub? No = next step; Yes = stop reading this email and take the rest of the day off since you are so ahead of the curve.
Last step: Contact your payroll company and let them know how much the company paid for your health insurance premiums. Tell them that the premiums should be subject to income tax withholding, but not Social Security, Medicare, or Unemployment. It should show up on box 1 of the W2 form, not box 3 or 5. After you are done, congratulate yourself on a job well done and do something to celebrate the small win.
Still confused? No problem! Contact us at OpsTeam@MyOpsManager.com or 760-603-1800.