Payroll, W-2 and Health Insurance Payments

by Pam
(Naperville, IL USA)

I am trying to create my W-2's via quickbooks. There is only 1 of me and I purchase my health insurance thru the company I own. My question is this - my W-2 is showing a negative number under Health Insurance. Also, for the federal part of the w-2, the amount paid to employee (Box 1) does NOT include health insurance premiums paid. This item is in a separate box.

Is this correct?


Hi Pam!

Thanks for visiting my site!

No, this is not correct. Your gross wages can only be reduced by 401(k) pension contributions if you've set up a proper plan, or other benefit payments if you've set up a Section 125 cafeteria plan, which, for one person, I'm assuming you don't have this.

Also, unless you're deducting your medical premiums from your gross wages, they should not be anywhere on your W-2, unless you want to include them in the "other information" area in box 12. Starting in 2012, W-2 forms will have to include medical premiums paid for each employee per federal government regulations, part of Obamacare.

I hope that helps!

Thanks again for visiting, and if you need anything else, please don't hesitate to email me. I'm so glad to help!


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