WebbHealth and accident insurance premiums paid on behalf of a 2% S corporation shareholder-employee should be reported as wages on the shareholder-employee’s Form W-2, subject to income tax withholding. In addition, the medical premiums paid by the S corporation for the 2-percent shareholder-employee’s spouse and dependents should also be ... WebbEmployee contributions to a 401(k) are moved for federal income tax and most states income tax, instead are subject to FICA taxes. IRA contributions, on the other hand, are withheld on a post-tax basis. Employer-paid premiums used health insurance are exempt from federal income and payroll taxes.

Rules for shareholder health insurance - SimonsBitzer

Webbshareholder-employee’s Form W-2. They are not subject to Social Security or Medicare (FICA) or Unemployment (FUTA) taxes. Therefore, this additional compensation is … Webb17 sep. 2024 · However, if the 2% shareholders are participating in a corporate plan established for the benefit of employees and their dependents, these amounts are NOT … cryptology ppt

HSA contributions, S Corp owner, and FICA taxes

WebbFor 2-percent shareholders, employer-paid short-term and long-term disability premiums are subject to FITW and SITW, but not to FICA or FUTA. Because the disability insurance … WebbTreating Medical Insurance Premiums as Wages. 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 … cryptology museum md