S-Corp Health Insurance on W-2 NJ | How to Record It Right

S-Corp Health Insurance W-2 NJ — Get It Right the First Time

If you own more than 2% of your S-Corp, your health insurance must be reported properly on your W-2 — or you could lose your deduction. Here’s how to handle S-Corp health insurance W-2 NJ filings accurately.

Step 1: Pay the Premiums Through the Company

The S-Corp should pay (or reimburse you) for the health insurance policy in the business name. Keep records of each payment.

Step 2: Add to W-2 as Taxable Wages (Code DD)

Include total premiums in Box 1 of the W-2 under “Wages,” but not in Social Security or Medicare wages (Boxes 3 and 5). Use Box 14 for “S-Corp Health.”

Step 3: Deduct on Shareholder’s 1040

You can take the self-employed health insurance deduction on your personal return—if it’s reported properly through payroll.

Step 4: Coordinate with Payroll Provider

Ensure your bookkeeping and payroll system syncs correctly so insurance premiums flow to the W-2.

CPA Tip:

Misreporting S-Corp health insurance W-2 NJ is one of the most common shareholder errors. Your CPA can fix it mid-year before filing season hits.

Need a CPA to Review Your Payroll Setup?

Let Gregory Monaco, CPA LLC review your W-2 reporting and shareholder deductions before year-end. We’ll ensure your S-Corp meets IRS and NJ payroll requirements — so you stay compliant and tax-efficient.

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Gregory Monaco, CPA | Livingston NJ (serving NJ + virtual nationwide)