CA 2% S/H medical adjusted gross not flowing to CA state adjusted gross

  1. In California, Company paid medical for a 2% Shareholder are taxable.
  2. Sage Knowledge base has a good article about how to add medical expense as a fringe benefit---->, however, from the Federal side.
  3. It stands to reason, that to adjust Gross ST_Income, the same procedure must be followed.
  4. But, CA wages are not adjusted (in this case, grossed-up) for Employer paid medical insurance on a 2% shareholder.
  5. Is this a bug?
  6. Or, am I incorrectly assuming that adjusting Gross wages for Federal is the same as adjusting Gross wages for CA state?
  • 0

    Hi FASBCPA:

    If I am reading this correctly you are in California using Sage 50 US. Your program is very different than the Sage 50 Cdn product used by the ones who are following this thread.

    I would suggest that you should repost your comments and questions in the Sage 50 Forum for the US version of the program.