Category: Year End Compliance
Are you a 2% or more shareholder of an S corporation?
The payment, plan, and reporting rules remain as:
Payment types: Paid directly by S corporation or reimbursed to shareholder
Plan types: Group plan, plan in the name of shareholder*, and/or Medicare
Report shareholder health premiums paid:
Reminder: These premiums are NOT deductible as a health insurance expense on the business return; they are deductible as shareholder wages if reported accordingly above.
*Premiums must be paid by S corporation or reimbursed to individual shareholder to qualify.
** Shareholder must have other wages subject to Social Security that at least equal the amount of premiums, in order for shareholder health to be eligible for 100% deduction on shareholder’s tax return.
To Do Before Year-end:
More than 2% shareholder with health insurance:
If you still have questions regarding ACA compliance, please contact your Kerkering Barberio tax advisor at 941-365-4617.