The IRS requires that S Corporation shareholders, who own more than 2% of the company shares, receive coverage of the company health insurance or long term care, the amount must be shown in box 14 of the W-2.
Remember, this only applies in S Corporations.
For information on how to handle this in QuickBooks Basic, Enhanced, and Assisted Payroll, but not QuickBooks Online Payroll, click here for the step-by-step procedure including screenshots from inside QuickBooks.
Our Thanks to Doug Sleeter, CPA, Founder and President of The Sleeter Group for this timely information.
