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March 10, 2024
Question

Can I set up a pre tax health insurance deduction when amounts deducted vary by employee?

  • March 10, 2024
  • 1 reply
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I am trying to set up pre tax health insurance deductions for 2 employees. They will each be having different flat amounts deducted from their paychecks. How do I set this up in Quickbooks Online payroll?

1 reply

March 10, 2024

I'm here to help you set up pre-tax health insurance deductions for your employees in QuickBooks Online Payroll (QBOP), aembrey.

 

In QBO, we can go to the Payroll menu and set up pre-tax health insurance deductions for your employees.

 

Here's how:

 

 

  1. Navigate to Payroll, access the Employees tab, and click Add an Employee.
  2. Within Deductions & Contributions, choose to Start or Edit.
  3. Click on the + Add Deduction/Contribution option.
  4. From the dropdown menu, select the following:
    • Deduction/contribution: Add deduction/contribution
    • Deduction/contribution type: Health insurance
    • Type: Select Medical Insurance, Vision Insurance, or Dental Insurance. If you're setting up a pre-tax item not listed like commuter benefit, AFLAC accident or cancer, etc, select Vision Insurance.
  5. Enter the provider's name in the Description field (which will be displayed on the paycheck).
  6. Choose the calculation method for your deduction, and input the specific amount or percentage per paycheck.
  7. Select Pre-tax insurance premium or Taxable insurance premium.
  8. If you contribute a matching contribution, add an amount or percent per paycheck for the company contribution.
  9. Once completed, click on Save and then Done.

 

You can check this article for more detailed steps: Set up and manage payroll items for your insurance benefit plan.

 

In addition, I've got this helpful resource to guide you further if you want to edit a deduction or contribution for your employees.

 

Stay in touch if you have any other questions or concerns about payroll deduction. I’ll be right here to answer them for you. Enjoy the rest of the day.