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October 19, 2018
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How do you set up Aflac as an employee deduction? (100% employee pd, after tax) Can I use other payroll deductions? Would COA be Payroll Liabilities & Payroll Clearing?

  • October 19, 2018
  • 3 replies
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Best answer by

Hi zconst2,

Yes, you can use the payroll deduction setup for any employee medical insurance like Aflac. Let me show you how to it:

  1. Go to Employees and select the name of the employee.
  2. Click on the Edit icon for Pay.
  3. Click on the Add a new deduction link.
  4. Select New deduction/contribution.
  5. Select Health Insurance.
  6. Select Medical for Type.
  7. Enter the name of the provider (Aflac).
  8. Enter the amount to be deducted every pay period and Annual Maximum (optional).
  9. Choose either Taxable insurance premium or Pre-tax insurance premium.
  10. Click on OK.

QuickBooks Online will automatically create a liability account for this medical insurance. You can review the account setup by going to Payroll Settings, and then Accounting under Preferences

When you're about to pay this medical premium, you can go ahead and create a Check. Just select the liability account for this medical insurance. You may also create a journal entry to debit the funds from the liability account to any clearing account you've created. 

If you have more payroll questions, I'd be glad to help. Just post them here. 

3 replies

Answer
October 19, 2018

Hi zconst2,

Yes, you can use the payroll deduction setup for any employee medical insurance like Aflac. Let me show you how to it:

  1. Go to Employees and select the name of the employee.
  2. Click on the Edit icon for Pay.
  3. Click on the Add a new deduction link.
  4. Select New deduction/contribution.
  5. Select Health Insurance.
  6. Select Medical for Type.
  7. Enter the name of the provider (Aflac).
  8. Enter the amount to be deducted every pay period and Annual Maximum (optional).
  9. Choose either Taxable insurance premium or Pre-tax insurance premium.
  10. Click on OK.

QuickBooks Online will automatically create a liability account for this medical insurance. You can review the account setup by going to Payroll Settings, and then Accounting under Preferences

When you're about to pay this medical premium, you can go ahead and create a Check. Just select the liability account for this medical insurance. You may also create a journal entry to debit the funds from the liability account to any clearing account you've created. 

If you have more payroll questions, I'd be glad to help. Just post them here. 

October 19, 2018
Hi, how would I do this with QuickBooks Pro 2016?
November 3, 2018

I have just been writing checks  to Aflac and not debiting them to a liability account. The checks are posted to my wages-Aflac account. How do I create a journal entry to correct this?

May 5, 2019

I am having problems setting up Alfac in desktop for employees who want both pre and post tax options.  I don't see the dropdown box on employee setup that gives those options. In payroll setup, company, I can choose either/or. you give me specific instructions for desktop please. Thanks Jane

May 6, 2019

Hi there, janesabindavis.

 

You’ll need to setup a payroll item and add it on the employee’s profile or paycheck. Also, you’ll need to select the correct tax tracking type when creating the item so they appear on the forms correctly. If you’re not sure which tax tracking type to select, I’d recommend getting in touch to Alfac. 


For further information about setting up payroll items, please refer to this article: https://community.intuit.com/articles/1762839


Drop by again if you have other concerns with QuickBooks.