If you are running your business as S-corporation, one of the common mistakes is you have not included the premium in your W-2. The rule requires you have the S-corp pay for the medical premium, but then you need to report the amount paid in your paychecks. Accordingly, all the payroll tax forms such as 941, DE9c, W-2 have to be reported properly. Please check the steps by my article dated on October 28, 2016.

If you have set up medical plan for your employees, be sure to provide the breakdown of the premiums you paid for them to your accountants. The tax credit will save you 50% of the amount you paid. Do not overlook the tax benefit.

 

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