Perked Up Coffee Shop LLC is taxed as an S Corporation. Paul, the only owner, takes a wage of $1,000 per week and also takes a monthly draw when finances allow. Paul participates in the group health plan, which pays 50% of the employee's premiums. His personal premium on the health plan bill each month is $500.

What amount will Paul see for Federal Wages on Box 1 of his W-2 at year end?

• $52,000 wages plus $6,000 for value of the health plan benefits
• $52,000 wages less $3,000 employee deduction for 50% of premium paid
• $52,000 wages plus total of monthly draws plus $6,000 for value of health plan benefits
• $52,000 wages plus total of monthly draws less $3,000 employee deduction for 50% of premium paid