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January 4, 2022
Question

Is the employees Health Benefits Contribution that he pays into taxed or untaxed. I thought it came out of their pay before it got hit with tax....does anyone know?

  • January 4, 2022
  • 1 reply
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1 reply

January 4, 2022

Hi there, @1935 1447 8652 099.

 

I'll share some information about health benefit contributions. Health insurance is taxable or pretax premiums. In QuickBooks, you have the option to select either of them. You can edit your employee contribution set up from their profile. 

 

Let me guide you how:

 

  1. Go to Payroll. Then, pick Employees.
  2. Look for the employee's name and then tap Edit employee.
  3. Under Step 5: Does employee have any deductions? section, select the Add/edit deductions link.
  4. Choose either the Pencil icon or the Trash Bin icon to edit the premium. See the image below.
  5. Click Done.

 

Learn more about the different pay types in this guide: Supported pay types and deductions explained.

 

In your case, you'll need delete and re-create the paycheck to correct your health contributions. Refer to this article for the steps: Delete or void employee paychecks.

 

Here's a link that'll help you manage payroll-related tasks: View all help for QuickBooks Online Payroll.

 

If you have other questions or concerns with health insurance, please let me know. I'll be around to help. Take care and have a great day ahead.