Hello, Atitude101.
I appreciate you for reaching out to us here in the Community. I understand how important it is to keep track of your health insurance taxes in QuickBooks Desktop.
Let's check how your health benefits insurance deduction item is set up. So that your Premium Only/125 is available in the system when you select the tax type, we need to ensure we follow the proper setup. Also, please ensure that your QBDT is updated to its latest release. This way, you'll always have the latest features and fixes for several problems.
Here's how to check the Set up a health benefit insurance deduction item:
- Go to Lists, then Payroll Item List.
- Select Payroll Item dropdown, tap New.
- Press Custom Setup, then Next.
- Click Deduction or Company contribution then Next.
- Enter the item name such as medical, vision, and dental, and tap Next.
- Hit the name of the agency to which liability is paid (or add it), and the account number. Then press Next.
- Set the Tax Tracking Type to Premium Only/125 (for pre-tax) and None (for after tax).
- Choose Next three times.
- For None tax tracking type, select net pay in the Gross vs. net window, then Next.
- Leave Default rate and limit fields blank. You can add the rate and limit when the item is added to the employee profile.
- Click Finish.
Moreover, for more insights about the Section 125 Health Insurance (Cafeteria Plan) set up in QBDT, you can always read through this reference: Set up a Section 125 Health Insurance (Cafeteria) plan payroll item in QuickBooks Desktop.
I suggest verifying and rebuilding the data if the issue persists. Your company file will be scanned for any damaged data using the verify tool, and anything that is detected will then be fixed using the rebuild tool. Also, it allows your QuickBooks software to update the data in the company file. For the details steps, please refer to this article: Verify and Rebuild Data in QuickBooks Desktop.
Feel free to update us on the result after performing the steps by commenting below. I'd like to ensure this is resolved for you. Take care always.
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