S Shrhdr Health Ins W2 Revisited

[Randall]

Is this still the proper way to show S Corp shareholder health insurance?  Not an expense on corp.  Added to W2 for income tax purposes, not FICA tax purposes.  Deduction on 1120S as Salary.  Individual shareholder shows higher W2 income, then takes the SE Health insurance deduction on his 1040.  This has been my understanding.  I know some things changed with Obama care.  But even with a 'group'  plan, I thought the shareholders still had to report it this way.  It makes no sense since the net effect is the same.

[Lee B]

It's been this way for almost 20 years and it hasn't changed

[Randall]

2 hours ago, cbslee said:

It's been this way for almost 20 years and it hasn't changed

That's what I was thinking too.  I have a client whose payroll service insists they don't have to do it that way.  I have to prepare corrected W2s for the two shareholders every year.  Sheesh.

[Lee B]

3 minutes ago, Randall said:

That's what I was thinking too.  I have a client whose payroll service insists they don't have to do it that way.  I have to prepare corrected W2s for the two shareholders every year.  Sheesh.

That's not a payroll service, that's a . . . . . . . . .