Careful…S-Corp Health Insurance Premiums Are Wages

In general, health and accident insurance premiums paid, on behalf of a greater than 2-percent S corporation shareholder-employee, are deductible by the S corporation. It is to be reportable as wages on the shareholder-employee’s Form W-2, subject to income tax withholding. A 2% shareholder-employee is eligible for an above-the-line deduction in arriving at Adjusted Gross …

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