Entering Employer Student Loan CONTRIBUTION

Hello, @LawPro90740.

Intuit is working diligently to get all the CARES Act updates included in QuickBooks. I'm glad you're wanting to do more for your employee by contributing to their student loan debt. However, there's no current way to input the tax-free contribution to employee's student loans. Rest assured, when we have more information on this topic; I'll gladly provide an update here. In the meantime, you can check out our blog page for any new updates to QuickBooks Online.

Thank you for reaching out and having patience with us during this tough time. Take care!

I believe I figured out a work around for this. I didn’t use the suggested cash advance recommendation because it was still showing as an employee deduction which we don’t want. Instead, I created a “fake” insurance contribution. I had to do this because quickbooks only allows you to customize deductions, not contributions.

1. In your chart of accounts, make a Student Loan Assistance (or whatever you want to name it) Payroll Liability Account (I made mine a sub account under my payroll liabilities.)

2. Make a Student Loan Assistance Expense Account (I made mine a sub account under my payroll expenses.)

3. Go to an employee’s profile. Under deductions, select add new, then healthcare. Use any of the medical/vision/dental options (these are the only non-retirement accounts that allow this). I used Vision.

4. For provider, put Student Loan Assistance. Whatever you put here is what will show on the employee’s check. For example, I used the Vision account but on the check stub it reads Student Loan Assistance.

5. For employee contribution, put $0. I selected “pre-tax contribution” but I don’t think this matters since the employee isn’t contributing anything.

6. For employer contribution, choose if you want it to be a set amount or percentage of gross pay. Be sure to put the max as $5250.

7. Once you save the details, go to your Payroll Settings then Accounting.

8. Select the pencil by Company Contribution Expenses. Find the payroll item you created and select the payroll expense account you created in step 2.

9. Select the pencil by Other Liabilities and Assets. Find the payroll item you created and select the payroll liability account you created in step 1.
10. Done.

Even though you technically used a “healthcare” account, that doesn’t show in any of the reports. It’ll just show as whatever you name it, even when you run your payroll reports.

Hope this helps! 

*Note that I’m not an accountant so please consult with yours. I was just someone looking to contribute to student loans and have accurate payroll records.

Since new legislation has extended this benefit through 2026, is Intuit going to create an item that tracks this correctly in Desktop and Online versions?

Hello there, EQ2.

I understand the significance of including the student loan payment in the paychecks. I'll share additional information about this feature.

We haven't received any updates regarding this functionality. I would appreciate it if you could share further feedback with our product engineers on this option. Please understand that we receive numerous feature requests from our customers, and implementation timelines can vary based on demand. Rest assured, our product engineers are dedicated to enhancing the product's features. 

In addition, you can take advantage of the payroll reporting functionalities in QuickBooks. These reports give you the ability to manage payroll taxes and easily monitor employee expenses.

I'll be right here if you need more assistance managing payroll or other concerns.