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Employee and Owner Benefits That May Be Taxable

Certain benefits provided to employees or owners must be included in W-2 wages. Please review the items below and use the linked worksheets if they apply to your company. Note: these requirements do not apply to not-for-profit corporations.

S-Corporation Health Insurance

  • For shareholders owning 2% or more, company-paid or reimbursed health insurance premiums must be included in W-2 income. Download worksheet here.

Personal Use of Company Vehicle

  • The value of personal miles driven in a company-owned or maintained vehicle must be included in W-2 income. Download worksheet here.
  • A notification to employees is available to not withhold income taxes on personal use of a company owned vehicle for the upcoming year. Download worksheet here.

Group Term Life Insurance (Over $50,000) / Group Life Insurance for 2% Shareholders

  • The value of employer-provided life insurance exceeding $50,000 is taxable to the employee.
  • For corporations, if an employee owns more than 2% of the company’s stock, the value of employer provided life insurance must be included in income. Download worksheet here.

We can work with your team or payroll provider to ensure these items are properly reported for federal, state, and payroll tax purposes. You can fax the forms to our office or email the information to your Client Service Executive or Engagement team member. If you are unsure whether any of these requirements apply to your business, please don’t hesitate to reach out.

  • Cleveland Office fax: (216) 566-9321 
  • Sheffield Village Office fax: (440) 934-3950 
  • Sandusky Office fax: (419) 626-3796