Before we go too far down the road, your business needs to track the amounts paid for fringe benefits so they may be included as Officer Compensation on Line 7 of your S Corp tax return and Box 1 of your W-2. Specifically-
There are others, but these are the biggies. If you are using accounting software or even Excel, each of these should be a separate category. If you wanted to get fancy, you could have an account labeled “Officer Compensation” with sub-accounts being Wages, health insurance, HSA, HRA and Other.
In QuickBooks-ese, it would look like this-
Officer Compensation : Wages
At tax time, your profit and loss statement would then be framed and hung on our smart client wall. Yes, we have a not-so-smart client wall too which is thankfully much smaller since it is temporary until we give you the “see… how it works is…” tutoring during a Periodic Business Review.
Taxpayer's Comprehensive Guide to LLCs and S Corps : 2019 Edition