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Adjusting Health Insurance (company paid)

Forum|Forum|7 years ago
December 26, 2018
3 replies
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I accidentally recorded S Corp owners insurance as "Health Insurance (company paid)" on every check for the member this year. I know how to add the S Corp piece, but I do not know how to adjust the "company paid" amount off of the paystub/W-2. Can anyone help with this?

QuickBooks Desktop

Best answer by AldrinS

Hi there, jennrobe.

You've come to the right place. Adjusting the company paid health insurance amount is my specialty.

Ideally, the appropriate way to clear this amount is to edit each paycheck and remove the Health Insurance (company paid) payroll item. However, that will take a long time to accomplish, especially if you have a lot of paychecks.

To easily fix this, you could do a payroll liability adjustment. Allow me to walk you through the steps on how to do it:

From the Employees menu, select Payroll Taxes and Liabilities, then Adjust Payroll Liabilities.
Choose the correct Effective Date. It should be the same date as the last paycheck of the affected quarter.
In the Adjustment is for section, select Company Adjustment.
Click the Item Name column and choose the correct health insurance payroll item.
In the Amount field, enter the total amount.
- Make sure to enter a negative amount to decrease the amount.
Click the Accounts Affected button, then select Affect liability and expense accounts.
Hit OK to save the entry.

All of this information and more is available from our guide on how to adjust payroll liabilities. That should do it. With these resources, I'm confident you'll be able to clear the amount off of your forms and reports.

Keep in touch with me here if there's anything else you need. I always got your back. Thanks for reaching out, wishing you and your business the best.

A

AldrinSAnswer

Hi there, jennrobe.

You've come to the right place. Adjusting the company paid health insurance amount is my specialty.

Ideally, the appropriate way to clear this amount is to edit each paycheck and remove the Health Insurance (company paid) payroll item. However, that will take a long time to accomplish, especially if you have a lot of paychecks.

To easily fix this, you could do a payroll liability adjustment. Allow me to walk you through the steps on how to do it:

From the Employees menu, select Payroll Taxes and Liabilities, then Adjust Payroll Liabilities.
Choose the correct Effective Date. It should be the same date as the last paycheck of the affected quarter.
In the Adjustment is for section, select Company Adjustment.
Click the Item Name column and choose the correct health insurance payroll item.
In the Amount field, enter the total amount.
- Make sure to enter a negative amount to decrease the amount.
Click the Accounts Affected button, then select Affect liability and expense accounts.
Hit OK to save the entry.

All of this information and more is available from our guide on how to adjust payroll liabilities. That should do it. With these resources, I'm confident you'll be able to clear the amount off of your forms and reports.

Keep in touch with me here if there's anything else you need. I always got your back. Thanks for reaching out, wishing you and your business the best.

J

jennrobeAuthor

Thank you AldrinS!

E

Erica M

I have employee health care deductions in payroll liabilities, paid back to the the company (checking). I cannot reconcile these transactions without an actual deposit, which seems really weird. :0 In any case, I cannot reconcile.

We are paying for the healthcare directly to the provider, then deducting a small portion of the additional employee optional coverages out of their payroll checks.

I have been unable to get our CPA to respond to my question, she instead refers us to a Certified QuickBooks expert, who does not respond.

Can you help me?

Kind Regards,

Erica M.

C

Charies_M

Hello there, Erica M.

Thanks for sharing your concern with us. Let's get this sorted out.

Since there is no actual deposit yet, what you can do for now is to except the transaction from reconciling until the actual deposit shows up on your bank statement.

Here's a great resource that you can check on for more information about reconciliation: Reconcile in QuickBooks Desktop.

For any QuickBooks Desktop concerns, you can reach us through the contact details found in this link: Contact the QuickBooks Desktop Customer Support Team.

Please don't hesitate to let me know if you have further questions while working with reconciliation. I'd be glad to help you out.

M

morty3115

Can you answer this question for the online quickbooks users?

I accidentally recorded S Corp owners insurance as "Health Insurance (company paid)" on every check for the member this year. I know how to add the S Corp piece, but I do not know how to adjust the "company paid" amount off of the paystub/W-2. Can anyone help with this?

Rose-A

I'm here to help keep the process of adjusting company-paid insurance easy and simple, morty3115.

You can follow the steps below to create an adjustment for the said company-paid insurance. Let me walk you through the process.

Click Employees at the top menu bar and choose Payroll Taxes and Liabilities.
Tap Adjust Payroll Liabilities.
Enter the Date and Effective Date.
Under Adjustment is for, choose Company.
Select the Health Insurance item and enter the Amount.
Tick Accounts Affected and then OK.
Hit OK.

I'd suggest consulting an accountant to ensure your books are accurate and not messing up other data. Your accountant can provide more expert advice regarding an accounting perspective.

For more details about this process, check out this article: Adjust payroll liabilities in QuickBooks Desktop. On the same link, you'll find a write-up about how to correct your year-to-date additions and deductions in QuickBooks.

Additionally, if you need help with removing overdue liabilities, you can refer to this article for the detailed steps and instructions: Enter historical tax payments in QuickBooks Desktop Payroll.

Please let me know how it goes by leaving a comment below. If you have more questions about payroll liabilities or need anything else, don’t hesitate to ask. I’ll be here to help. Have a most pleasant day!

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