Federal Tax

  • 1.  Partners and S Shareholders SEHI

    Platinum Most Valuable Member
    Posted 01-10-2014 06:14 AM

    My friends

    I am trying to understand the methods of handling of SEHI across various entity types, and could use some clarification.

    If we assume there are two 50% owners and one is single, and one has a family :

    Partnerships  -  does the amount of SEHI on a partners K-1 include :

                                  His profit percentage of partnership SEHI , or
                                  The cost to the partnership of his specific family coverage.

    S Corp         Same facts   -   what goes to their W-2

    any help appreciated  :)

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    Abby Alhante
    KURCIAS & ALHANTE, CPAs LLC
    Woodbury NY
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  • 2.  RE:Partners and S Shareholders SEHI

    Platinum Most Valuable Member
    Posted 01-11-2014 12:40 PM
    Abby
    In my humble opinion
    If you have a partnership the health insurance premium appears as part of "guaranteed payments" on line 4 of the K-1

    On the on ther hand, for S Corporate purposes, the health insurance premiums should be included on line one of the W-2 (wages, tips and other compensation) but not on lines 3 or 5 (FICA or Medicare Wages) since this is considered compensation at the S Corp level but is not taxed for either FICA/Medicare, FUI or SUI (NYUI) purposes.

    This would be a great question to include in our chapter's March meeting.

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    David Rothfeld
    DAVID J. ROTHFELD, CPA
    Hicksville NY
    516-433-2129
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    Original Message


  • 3.  RE:Partners and S Shareholders SEHI

    Platinum Most Valuable Member
    Posted 01-11-2014 02:17 PM

    David,

    thanks so much for chiming in....

    so are u saying that the Health insurance should be deducted in the partnership?

    as far as the guarantied payment to each partner:

         do we take only what is attributable to that partner, or is it his profit % share of all partnership SEHI?

    what is your specific humble opinion...?


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    Abby Alhante
    KURCIAS & ALHANTE, CPAs LLC
    Woodbury NY
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    Original Message


Discussion Disclaimer

The opinions expressed are the views of the author alone and should not be attributed to any other individual or entity and shall not constitute an accounting opinion.