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Adding S-corp Owner's Health and Life Insurance to Wages

Posted on by 5

How do i go about adding company health contributions to our owners' gross and federal wages (they are exempt from FICA and Unemployment). Can this be accomplished using manual checks? I ran a test using Check Type "Beginning Balances" and added the amount using a special pay code which updated gross wages but not federal wages.  

How do i make sure federal wages are also updated? I need to make sure all tax forms and reports are corrected by this entry: W2, Forms 940 and 941.

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  • MartinaS Profile Picture
    MartinaS 5 on at
    RE: Adding S-corp Owner's Health and Life Insurance to Wages

    Thank you, Terry!

  • Suggested answer
    Terry R Heley Profile Picture
    Terry R Heley Microsoft Employee on at
    RE: Adding S-corp Owner's Health and Life Insurance to Wages

    Hi Martina, yes manual checks would be the way to go about this.

    Federal taxable wages would need to be updated by choosing the federal tax type in the drop down list vs a pay code.

    Here is a blog on manual checks

    community.dynamics.com/.../how-to-process-a-manual-check-in-payroll

    Here is detailed documentation around it too

    learn.microsoft.com/.../payrollus

    Thanks

    Terry Heley

    Microsoft

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