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J
Joy4
November 4, 2021
Question

Health Insurance

  • November 4, 2021
  • 1 reply
  • 0 views

We pay our employees health insurance to Blue Cross.  We have an employee that has decided to pick up his wife and son.  This needs setup as a payroll deduction and will,  more or less, be considered a reimbursable expense. 

 

Can anyone share how they set their deductions up?

1 reply

M
MirriamM
November 4, 2021

Hi there, @Joy4.

 

I'm here to help you set up the reimbursable expense item.

 

Here's how:

  1. Go to the Lists menu at the top.
  2. Select Payroll Item List.
  3. Click the Payroll Item button at the bottom of the window.
  4. Choose New. 
  5. Select the Custom Setup option for the payroll item.
  6. Set the type as Addition, then hit Next.
  7. Enter a name such as "Reimbursement", then proceed with Next.
  8. Set the Expense account to where you would track your office supply expenses. 
  9. Click Next, then continue the setup. 

 

After that, add the item when running payroll for the employee.

  1. Go to the Employees menu at the top.
  2. Select Pay employees. 
  3. Check the employee you want to pay and reimburse.
  4. Click the Open Paycheck Detail button.
  5. Under Other Payroll Items, select the reimbursement item. 
  6. Proceed with the payroll as you normally would. 

 

For more details about this process, see this article: Create a non-taxable reimbursement payroll item.

 

To help pay your employees, here's a resource that you can read: Learn how to create paychecks. It provides detailed steps as a guide.

 

Keep me posted if there's anything else you need with QuickBooks. I'm always around to help you.

J
Joy4Author
November 8, 2021

Thank you but this isn't to reimburse the employee.  This is $4.00 per pay the employee owes us for extra insurance.

M
MadelynC
November 8, 2021

I’ve just got the details you need to set up this extra insurance in QuickBooks, Joy.


Yes, you’ll want to create a payroll item for an insurance benefit in QuickBooks Desktop Payroll. This way, you can add this deduction to your employee's profile and paychecks. I’m glad to show you the steps.

 

  1. Go to the Lists menu, then choose Payroll Item List.
  2. Click the Payroll Item dropdown and select New.
  3. Choose Custom Setup and then Next.
  4. Select the payroll item type and click Next.
  5. Name the deduction item and click Next. This name appears on pay stubs and payroll reports.
  6. Enter the agency for the employee-paid liability, account number, and the liability account for the payroll item.
  7. Hit Next.
  8. Click Tax Tracking Type and select the type required for the correct tax classification.
  9. Click Next.
  10. In the Taxes window, please don’t change any of the taxes. Just click Next.
  11. In the Calculated based on quantity window, select Neither and press Next.
  12. Select gross pay in Gross vs. net if the amount of the deduction is a percentage (%) of an employee's gross earnings. Otherwise, select net pay if it's a fixed dollar amount.
  13. Click Finish.
     

Then you can now add the item to the appropriate employee’s profile and enter an amount for each payroll deduction.


Here’s how:

 

  1. Select the Employees menu, the Employee Center.
  2. Locate the employee’s name from the list, then select the Pencil icon beside the Attach icon.
  3. Go to the Payroll Info.
  4. In the Deductions section, select the payroll item you just created and enter the amount.
  5. Click OK to save.


Check out this reference for more insights and complete instructions: Set up a payroll item for an insurance.


Once everything is good, you can use this information to process payroll: How do I create a paycheck for an employee?


Add a comment below if you have other payroll questions or concerns. We'll be more than happy to help. Keep safe!

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