A couple of follow-up comments to your questions:
- While the health insurance is included in compensation, it is not subject FICA or FUTA.
- This is the same for partnerships (another pass-through entity).
- Most likely a plan through a business is best, but can't say for sure. If Jean were to purchase an individual plan, the $$ would need to come out to her to pay the premium, and in order to do that, compensation would need to be increased....essentially a wash in my mind.
- Don't forget the health insurance deduction on the 1040 for this premium included in wages.
- And adjusting for the health insurance payment on 12/31 makes sense to eliminate the M-1.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
