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January 10, 2024
Question

How do I set up Qualified Small Employers HRA (QSEHRA) in Quickbooks online?

  • January 10, 2024
  • 1 reply
  • 0 views
I need specific setups to: 1 - make it to be a tax free reimbursement to the employee; and 2 - code it properly to hit the W2 Box 12, Code FF.

The existing guidance on the forum is not solving this for QB Online.

1 reply

January 10, 2024

I'd be glad to assist you set up tax-free reimbursements for employees in QuickBooks Online, @1singht .

 

Reimbursements pay types are not subject to any taxes, but it is useful if you separate track reimbursements for different expenses types.

 

Once the payroll item has been added it will show on a new line item in the payroll check. I'll share information about the details on how to record or set up reimbursement.
 

Here's how: 

  1. Go to Payroll, then Employees.
  2. Select your employee.
  3. From Pay types, select Start or Edit.
  4. Scroll to the Additional pay types section and select Reimbursement.
  5. When you’re finished, select Save.

 

See this article for more details:  Reimburse your employee in QuickBooks Payroll

 

Additionally, you can report reimbursed health coverage on your employees' W-2 forms. However, please note that adding the reimbursement pay type doesn't automatically generate an amount in box 12 with code FF unless you follow the W-2 reporting steps. If you wish to know more about this, check out this article: Report healthcare reimbursements (QSEHRA) on W-2 forms.

 

Let me know if you need further assistance with your QSEHRA setup in QBO. Simply drop your comments below, and I'll be more than happy to help. Have a good one.