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October 25, 2022
Question

change my health insurance from taxable to pre tax

  • October 25, 2022
  • 1 reply
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change my health insurance from taxable to pre tax

1 reply

October 25, 2022

Good day, and thank you for reaching us, dencren

 

I'm here to share some insights about the health insurance set up in QuickBooks Online Payroll.

 

Once you've set up the taxable health insurance deduction/contribution item, you can no longer change it to pre-tax. We can only add a new pre-tax deduction/contribution item and delete the taxable one.

 

To add the pre-tax health insurance:

 

  1. Go to Payroll, then Employees. then click on your employee.
  2. From Deductions & contributions, select Start.
  3. Click on + Add Deduction/contribution,
  4. From the Deduction/contribution type: drop down, choose Health Insurance.
  5. For the Type, select Medical insurance, Vision Insurance, or Dental Insurance. If the pre-tax insurance type is not listed, use the vision insurance item.
  6. In the Description (appears on paycheck) field, enter the provider’s name.
  7. Choose Flat amount or Percentage of gross pay, then enter the amount or percent per paycheck.
  8. Select Pre-tax insurance premium.
  9. If you make a matching contribution, add an amount or percentage per paycheck for the company contribution.
  10. When you're finished, click Save, then Done.

 

To remove the taxable deduction/contribution item, you can click on the delete icon beside the Edit ✎. Then hit Delete to confirm. I've added this article for more details: Set up and manage payroll items for your insurance benefit plan.

 

In case you need to run a report for the Insurance benefit plans, you can use this link as a reference: Run payroll reports in QuickBooks Online Payroll.

 

Leave a comment in this thread if you have follow-up questions about payroll. I'll be here to assist. Enjoy your day!