@Suzanne19 wrote:
The resulting K-1 shows wages as actual wages plus health insurance.
No, the K-1 does not show "actual wages plus health insurance" in this instance.
Rather, the corporation can deduct the amount paid for salaries of officers/shareholders plus health insurance premiums paid on their behalf and the result appears on Line 1 (Part III) of the K-1 (ordinary business income (loss)) as part of that calculation; salaries and wages appear on W-2s issued by the corporation.
The corporation then needs to include the premium on the officers'/shareholders' W-2s.
To be blunt, someone without the requisite knowledge should probably not be preparing an 1120-S, but should leave that task (as well as other tax-related functions) to a tax/accounting professional.
