1 min read
We hope 2018 has been a good year for all our clients so far. It is hard to believe we are almost ready to say farewell and welcome 2019. Even though we are still a few months away, it is never too early for our S corporation clients to start thinking about their owner’s health insurance reporting. For S corporation owners that have a 2% or greater ownership stake in the company, the health insurance premiums paid by the company must be reported as wages for these individuals.
In general, we recommend clients send us this information by late December/early January at the latest to ensure this is included on the original W2s and 4th quarter returns. As soon as we know the exact deadlines for 2018 reporting, we’ll let you know.
Late notification of the owner’s health insurance premiums is one of the leading causes of amended returns at year end. If this information is reported late, you could be facing a minimum of $350 in fees for special payroll processing and amended return filings. These fees can increase if you have more than one owner since it will require more than one W2 correction.
If you do need to report the business owner’s health insurance premiums, now is a good time to start thinking about getting that prepared while you are trying to savor the moment for everything pumpkin spice before the chocolate peppermint takes over!