I set up an insurance benefit  as a company expense in payroll settings with yes to general ledger and reports and taxable for federal and state wages only. It is deducting rather than adding to Federal and state wages on W-2's. I've had this problem for years and managed to work around, make manual entries on W-2 screen processing, but there has go to be a better way. This is the typical S-Corp shareholder medical insurance taxable for federal and state wages only. I've been doing this over thirty years and this issue continues to be a thorn in my side. Any advice would be appreciated.