Such payments to the corporate officer are treated as wages. Courts have consistently held S corporation officers/shareholders who provide more than minor services to their corporation and receive, or are entitled to receive, compensation are subject to federal employment taxes.
How do I report S corp health insurance on W-2?
When you view the W-2 Summary Report or download the actual W-2 form, the year-to-date S Corp Health contributions will be added to the total in Box 1 for federal taxable wages, Box 16 for state taxable wages, and Box 14, with the label “SEHI” for Shareholder Employee Health Insurance.
What are lines 7 and 8 in 1120-S?
1120-S line 7 is officers (more than 2% owners) wages and line 8 is employee (less than 2% owners) wages. Line 17 is pension plan contributions and line 18 is employee benefits. 941 has w-2 box 1 taxable wages and box 5 FICA wages.
Do you try to line up 1120-S with 941?
1120-S line 7 is officers (more than 2% owners) wages and line 8 is employee (less than 2% owners) wages. Line 17 is pension plan contributions and line 18 is employee benefits. 941 has w-2 box 1 taxable wages and box 5 FICA wages. Do you try and line up 1120-S with 941? e.g line 7 & 8 W-2 box 1 and put 401k elective deferrals on line 17?
How to reconcile the W3 to the 1120s?
I always “reconcile” the W3 to the wages reported on the 1120S. If client ever gets audited, this is something the auditor typically asks to see. In the “per payroll reports” section of your reconciliation, start with Medicare Wages. Add to that total any S/E Health included in Box 1 on the W2’s.
What are the tax lines on Form 1120?
Line 21. Ordinary Business Income (Loss) Line 22a. Excess Net Passive Income and LIFO Recapture Tax Excess net passive income tax. LIFO recapture tax. Line 22b. Tax From Schedule D (Form 1120-S) Investment credit recapture tax. Interest due under the look-back method—Completed long-term contracts.
