How to Adjust W-2s to Report Shareholder’s Health Insurance

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.


Perlinger Consulting, Inc., is a firm that provides QuickBooks® Consulting and Training services to small to medium sized businesses in a variety of industries. It is owned and operated by Glenn Perlinger, a QuickBooks® Certified ProAdvisor. Glenn has a Bachelor of Science Degree in Computer Information Systems Management from Colorado Christian University.

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