S corporations can run into some muddy waters when calculating total compensation, particularly relating to medical insurance premiums. According to the Internal Revenue Service (IRS), when it comes to treating medical insurance premiums as wages, “health and accident insurance premiums paid on behalf of a greater than 2 percent S corporation shareholder-employee are deductible by the S corporation and reportable as wages on the shareholder-employee’s Form W-2, subject to income tax withholding.” It is important…
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