How to record S-corp fringe benefits

As an S-corp, you can offer taxable fringe benefits to cover medical expenses to your workers as taxable income. As an S-corp owner, you can also participate in your taxable health benefit as long as you include it as additional income.

Please follow the steps below to set up a S-corp Health Benefit:

1. Navigate to your Payroll app > Profile tab > Benefits card > Edit.

2. Select the button to Add new benefit.

3. From the drop-down options, choose: Benefit category > Health Benefit, Benefit type > S-Corp Owners health insurance.

4. Indicate if the contribution amounts will be calculated per paid period or a fixed amount per month.

5. For this benefit type, an employer contribution is the default funding type. 

6. Enter the amounts to be calculated then click Save.

What if I did not record S-corp health benefits throughout the year?

If you did not set an S-corp health benefit to be withheld from pay runs through out the year, prior to December 31 you can record the amounts as a lump sum via an off-cycle payrun.