The health insurance provided to non-owner employees who are at least 2% shareholders is subject to income tax. To report on this tax through Fingercheck, you must create an S Corporation earning code (if you don't have one). Then, run a special payroll and create a manual check, which is used for recordkeeping purposes only.
If you do not know the amount you are being taxed on, please consult your accountant.
How to Create an S-Corporation Earning Code
Sign in to your Fingercheck account as an Administrator.
Click the SETUP tab > Payroll > Earnings.
Click Add.
The Add Earning panel that appears.Scroll down and select the Add button for S-Corp Medical.
In the confirmation box that appears, click OK.
For more information, see How to Set up Earning Codes.
How to Run a Special Payroll for Manual Checks
Click the PAYROLL tab.
Click Special Payroll.
In the Add Special Payroll pop-up window, enter a Check Date.
Important! When completing the date fields in this window, make sure to enter the year of the income that is being taxed.
Enter a Run Number (other than 0).
The number cannot be the same number as an existing payroll run, and it cannot be 0.
Enter the Period Begin and Period End dates.
Enter the Schedule Date for the check.
(Optional) Complete the other fields as needed.
Click Save.
You are automatically brought into Step 4, Payroll Entry, which is empty. You will not continue this payroll just yet.
Click the PAYROLL tab again.
Create a manual check as described below.
For more information, see How to Run a Special Payroll.
How to Create a Manual Check and Complete a Special Payroll
Create a manual check
Back on the Payroll Dashboard, click Manual Checks.
Make sure the payroll date is set to the special payroll date you selected in the previous procedure.
Click Add.
Select the employee, and click Continue.
In the pop-up window, complete the fields.
Turn on the Block toggles for Scheduled Earnings and Scheduled Deductions.
On the Earnings tab at the bottom, click Add.
Enter the S-Corp Medical earning code and the amount.
Click Calculate.
The net pay will be $0.
In the confirmation box that appears, click OK.
Click Save.
Resume the payroll run you started in the procedure above.
Click the PAYROLL tab.
In the top-right corner, verify that the date and payroll run you selected for the manual check appears correctly. If it is not correct, select the correct one.
Click Resume Payroll, and click Resume in the pop-up window.
The Payroll Entry page will be empty.
Click Next.
On the Preview Payroll page, you will see the SCorp check you created.
Complete the payroll run.
For more information, see How to Process a Manual Check.
Here is a short video showing you how: