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john1013
December 8, 2022
Question

100% employer paid pretax Aflac

  • December 8, 2022
  • 2 replies
  • 0 views

I am offering my employee's aflac starting 2023. I know how to set up pretax aflac payments for employee deduction, but it will be 100% paid by the company. How do I set this up to get the pretax deductions but not come out of the employee's actual pay amount?

For example, right now I have an employee that makes $14 and hour, which after taxes is 503.46. When I enter the aflac pretax deduction, it reduces employee and employer tax payments, but it also deducts amount from employee paycheck, therefore reducing net pay to $486.03,  which I don't want because he is not paying the premiums.

2 replies

Candice C
Candice C
December 8, 2022

Hey there, @john1013. 

 

It's great to see you back in the Community. Let me share some insight that can help you out about paid pretax.

 

Based on the details you gave, I recommend review this guide to give you some more information: Set up and manage payroll items for your insurance benefit plan. 

 

If you have any further questions on how these transactions effect the payroll, I suggest consulting with your accountant to be sure. 

 

I'm only a post away if you have any other concerns. Have a wonderful day! 

J
john1013Author
December 8, 2022

This did not answer my question, as I already know how to set up and manage payroll items. The question was how to set up to get the pretax qualifications without the deduction actually coming out of paycheck.

S
SashaMC
December 8, 2022

Hello john1013,

 

Thanks for chiming in! You would need to set up a company contribution item instead of a pretax deduction item to avoid the deduction coming out of the employee's paycheck! Here's how to create that health insurance plan item:

 

  1. Go to Lists, then Payroll Item List.
  2. Select Payroll Item ▼ dropdown, then New.
  3. Choose Custom Setup, then Next.
  4. Hit Company Contribution, then Next.
  5. Enter a name for the item and select Next.
  6. Select the name of the agency to which the liability is paid (or add it),  and enter the account number. Select the liability and the expense account where you want to track the item, then select Next.
  7. In the Tax Tracking Type window, choose the specific contribution item. Select Next twice.
  8. Under Calculate based on quantity, select Neither, then Next.
  9. Leave Default rate and limit fields blank. You can add the rate and limit when you add the item to the employee profile.
  10. Select Finish.

 

You would then have to add this to the employee profile, which those steps can be found in this linked article.

 

Let me know if you have any other questions or concerns by responding below. I will be happy to answer them! Take care for now!

J
jmkosut
June 21, 2023

I am an Aflac Agent, this post is older so I am thinking you have gotten the answer to your question but if not let me know and I will gladly help you!

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