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sheri5527
April 26, 2022
Question

New to Payroll trying to setup Company Paid Life insurance at 25k per employee

  • April 26, 2022
  • 1 reply
  • 0 views

Using Enhanced Payroll for Desktop, New to Payroll.

 

We give all full time employees over 90 days free 25k life insurance.  I see all kinds of instructions on how to set this up for over 50k but nothing on how to set it up for under 50k.

 

I need to also make sure it tracks the weekly expense per employee that I have to pay my health insurance company.

 

Help??  Thanks in Advance.

1 reply

MaryLandT
MaryLandT
April 26, 2022

Thank you for subscribing to your payroll service, sheri.

 

Let me help you set up the life insurance for your employee. In QuickBooks Desktop, you can still use the Group Term Life Insurance (GTLI) to pay for the company contribution.

 

However, you may need to contact your accountant and check with them on which tax tracking type to select. Meanwhile, here's how to set up the payroll item.

 

 

  1. From Lists on the top menu bar, choose Payroll Item List,
  2. Select the Payroll Item button, choose New.
  3. Select Custom Setup.
  4. Choose Company Contribution and select Next.
  5. Name the payroll item and select Next.
  6. Choose the name of the liability agency, Liability Account, and select Next.
  7. Choose a Tax Tracking Type, then Next.
  8. Do not uncheck any of tax selections, then next.
  9. Choose Neither on Calculate Based on Quantity and select Next.
  10. Leave the Default Rate and Limit screen blank, then click Finish.

 

Once done, make a scheduled payment for the liability check. I'm adding this article as a guide: Learn how to pay third-party agencies for your benefits or deductions in QuickBooks Desktop Payroll. It provides detailed steps on how to pay scheduled liabilities.

 

Let me know if there's anything else you need about setting up a Company Paid Life Insurance to your employees. I'll be right here to help you.

J
joeyful
May 31, 2023

How do you set this up in QB online?

M
Mark_R
May 31, 2023

Hi there, @joeyful.

 

In QuickBooks Online (QBO), you can go to the employee's profile and set up the insurance from there. Let me guide you through the steps.

 

  1. Sign in to your QBO account.
  2. Click Payroll from the left menu, then select Employees.
  3. Select the employee from the list.
  4. From Deductions & Contributions, select Start.
  5. Select + Add Deduction/contribution. 
  6. From the drop-down menu, select Medical Insurance, Vision Insurance, or Dental Insurance. 
  7. In the Description (appears on a paycheck) field, enter the provider’s name.
  8. Select how your deduction is calculated, then enter the amount or percent per paycheck.
  9. Select Pre-tax insurance premium or Taxable insurance premium. If you contribute a matching contribution, add an amount or percent per paycheck for the company contribution.
  10. Click Save, then Done.

 

I'm adding this article for more guidance: Set up and manage payroll items for your insurance benefit plan.

 

Just in case you want to run payroll reports to view useful info about your business and employees, you can check out this article for more guidance: Run payroll reports.

 

Come back to this post if you have other concerns or follow-up questions about payroll. I'm always here to help.

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