On a W-2 where do I put employer paid health insurance for >2% owner

[rvhatcher]

I'm using QEF and it's not apparent where I put the amount the company paid/reimbursed me for health insurance.  I am the owner so it needs to show as income.  Is it line 1 as part of regular wages or can I use line 14 and just enter Health Insurance?

I know it's not subject to SS or Medicare so line 1 seems like the wrong place.

[KarenM90 · Accepted solution]

Yes, you are correct.  They are not subject to Social Security and Medicare but they are subject to Federal Withholding.

From the IRS Publication below:  

Health and accident insurance premiums paid on behalf of a greater than 2-percent S corporation shareholder-employee are deductible by the S corporation and reportable as wages on the shareholder-employee’s

Form W-2, subject to income tax withholding. 

However, these additional wages 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.

Here is a link to the IRS Article from which the above excerpts came:  Insurance Premiums

[rvhatcher]

Thanks, that's exactly what I need.