S Corp Health Insurance Premium Reimbursement

pivypivy Member Posts: 1

I have an S Corp, and I'm my sole employee. The S Corp pays my health insurance premiums, which are subject to income taxes, but not social security or medicare. Is there a way to get Wave to properly account for this tax treatment?

Comments

  • AlexiaAlexia Administrator Posts: 3,315 admin

    Hi, @pivy,

    When you account for your deductions in Wave, you'll do it through a journal entry. You can split those deductions between different accounts as needed. In your case, I would recommend having different expenses or liability accounts for each of those taxes (depending on how they are handled on your side).

    I can't give advice when it comes to tax compliance, however, as I'm not an accountant and I'm not familiar with your local tax regulations. Whenever taxes are involved, it's always a good idea to check in with an accountant. They would be able to help you much more than I could.

  • kdeconsultingkdeconsulting Member Posts: 1

    This is one of the things that has really bugged me with Wave Payroll. For being small business focused this is a major oversite on their payroll offering(especially since this is something you pay for). Every year I basically keep Health Care Premiums in their own category of expense and then instead of submitting the W2s as is from Payroll I manually enter the data into the SSA site by adding the total amount of that account to box 1 and 16(I have state income tax too). It is annoying and I have had to do it every year for the last 3 years. I am hoping one day Wave will fix this and add it as a special benefit under payroll. My accountant yells at me about it every year but they get over it and make it work.

  • elodis88elodis88 Member Posts: 1

    Agreed! I deal with the same issue as kdeconsulting. It's ridiculous that we're paying over $400 a year now for a half baked payroll solution. Guess I'll be looking at quickbooks for 2019

  • Labob246Labob246 Member Posts: 3

    Whoa. I just moved to Wave Accounting and Payroll for 2019 and I guess I overlooked this problem. I was wondering what to do about my business S corp health insurance premiums, and now I see this is a problem. hmmm.

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