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I have been told that an officer of our company will be receiving income on an annual basis from an Officer Life Insurance policy that was purchased for him.  Has anyone dealt with this?  If so, how is it disbursed to the employee?  Is it ran through payroll as a "bonus" check and show up on his W2?  Or is it ran through AP and generate a 1099R?  Any help would be greatly appreciated!!

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  • 0 in reply to LSimmons
    SUGGESTED

    I may have misread your original request.  I thought you were talking about shareholder medical not life insurance dividends.  I searched the IRS.gov W-2 instructions and there is NO mention of reporting life insurance dividends on a W2.  Are you sure the life insurance company isn't going to send them a 1099?  But IF your CPA tells you they are reported the same, then you can set it up like this.

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