Health insurance for 1 shareholder in S Corp gets added to wages, are the health insurance premiums subject to social security and medicare tax?

Forum|Forum|6 years ago
December 7, 2019
1 reply
1 view

I have added the health insurance premiums to the W2 for the 1 shareholder in S Corp. I know in the past no social security tax or medicare tax was required. is it now required under new tax law 2018?

Lacerte Tax

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Best answer by IRonMaN

They are added to Social Security and Medicare only if health insurance isn't offered to other employees.

IRonMaNAnswer

Level 15

They are added to Social Security and Medicare only if health insurance isn't offered to other employees.

Slava Ukraini!

A

asparrow08

Level 3

Here is a scenario: there are two shareholders - one is covered by their husbands military health insurance and the other shareholder’s premiums are reimbursed by the business. These heath insurance reimbursements would NOT be subject to FICA, correct?

The rationale would be that this is still being “offered” to the first shareholder; however, they don’t need it due to the health insurance being covered by her husband. Am I thinking about this correctly?

sjrcpa

Level 15

You are correct.

The more I know the more I don’t know.

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