S-Corp Health Insurance: Report it right!
What You Need to Know for Year-End
IRS Rule
- Health insurance for S-Corp owners (more than 2%) must be treated as wages on your W-2.
Action Steps
- Total premiums paid in 2025 so far + estimate remaining months.
- Share this figure with your payroll processor.
W-2 Impact
- Add amount to Federal Box 1 and Ohio Box 16 wages only.
- No change to Social Security, Medicare, or local wages.
- Include a note in Box 14 for S-Corp Health Insurance.
Why It Matters
- If not reported, the IRS may disallow your health insurance deduction.
Tip: Accuracy matters less than making sure it’s reported!
Need help before year-end? Contact us today to ensure compliance and avoid costly mistakes!