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zaidacarrion
October 7, 2024
Question

Cafeteria Plan Set Up in Quickbooks

  • October 7, 2024
  • 1 reply
  • 0 views

I need some help to set up a new Cafeteria Plan that our company recently established for some employees. 

The Facts:

  • Some employees are salary, others hourly, and hours vary.
  • Payroll is every week
  • The plan that we have, almost 80% (estimate) of the employee wages will be to the plan and no taxable for social security and medicare. The other part will be taxable as regular.
  • The amount of those exempt wages are a fixed amount, so the diference of each week payment will be the taxable.
  • I need a report each week to make the payments for the IRS to know how much of the wages are taxable for them, so make the deposits every week.
  • I will need a report for every month for the Payroll Tax Returns every quarter, in which I can see the taxable wages and the exempt ones from SS & Med, but anyway payable to that company.
  • So basically, the company instead of reporting and paying that income for the IRS will be payed to that private insurance company.
  • Not all employees are in the plan

How can I setup the payroll for this?  I tried creating in other addittion and deductions what is taxable and exempt, but it makes a difference in the paycheck, when it shouldn't.

 

If anyone can tell me how can I do this?

1 reply

D
DebSheenD
October 7, 2024

I'd be glad to assist you in setting up the payroll especially if the pay type is taxable or exempt, zaida.

 

To properly assess whether or not an item is taxable, you can set up two pay types for each process one for taxable items and another for tax-exempt items. By doing so, you can easily distinguish the tax status of an item. For your plan, 80% of employee wages will be non-taxable for Social Security and Medicare, while the remaining part will be taxable as regular. You may need to consult with a tax professional to ensure compliance with regulations.


To ensure accurate payments for the IRS, we'll need to generate a tax liability report each week that outlines how much of the wages are taxable. This report will enable us to deposit the correct amount of funds every week.

 

Here's how:
 

  1. Go to Reports.
  2. Click Employees and Payroll.
  3. Choose Payroll Tax Liability Report.


We can also open the Payroll Detail Review for us to check if taxable exempt wages. Here's how:
 

  1. Go to Reports.
  2. Click Employees and Payroll.
  3. Choose Payroll Detail Review.

 

Please refer to this article for more details about how to run, print, and customize payroll reports in QuickBooks Desktop Payroll:

 

 

In the future, you might want to pay your payroll liabilities with QuickBooks Desktop. This link will guide you on how to do it: How to use QuickBooks to pay payroll taxes and other Liabilities.

 

If you have any questions or concerns about payroll taxes, don't hesitate to contact me. I'm available to offer support and guidance whenever needed. Let me know what you need, and I'll provide the best possible solution. Stay safe and take care!

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