Best practice to correct insufficient withholding for SS & Medicare taxes

[BHAssociatesLLC]

I have an LLC set up as an S-Corp for taxes.  I just discovered Quickbooks was not set up to withhold Social Security or Medicare taxes for the income I have to claim for the company paying my health insurance.  Federal withholding was done correctly.  What is the best way to correct that?

[BHAssociatesLLC]

I should have mentioned, the withholding was done wrong for all of 2021.  Also, I file a 941 immediately after each paycheck, I don't wait and do it quarterly.

[MaryK4]

The additional wages due to the Health Insurance premiums are not subject to Social Security, or Medicare (FICA), or Unemployment (FUTA) taxes if the payments of premiums are made to or on behalf of an employee under a plan or system that makes provision for all or a class of employees (or employees and their dependents). Therefore, the additional compensation is included in the shareholder-employee's Box 1 (Wages) of Form W-2, Wage and Tax Statement, but is not included in Boxes 3 and 5 of Form W-2.  f you paid the withholding al ready you do not have to amend.  (See S Corporation Compensation and Medical Insurance Issues.)

[Critter-3]

The form 941 can only be filed once a quarter ...you can make a payment online for each paycheck but you cannot file a form 941 more than 4 times a year.   I think you should seek local professional assistance to get your payroll corrected and get educated on how to do it yourself going forward. 

And the QB will compute the payroll correctly if you complete it correctly ... seek QB assistance on the QB forum for instructions on this issue.