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lauriem
December 2, 2021
Question

Payroll item

  • December 2, 2021
  • 1 reply
  • 0 views

Hi, we want to reimburse an employee for insurance premiums her husband paid for her at his work

 

When I tried to create an Addition called "Medical Reimbursement" I wasn't allowed to use it when I tried to create the payment

 

Should I call it a bonus?

 

1 reply

R
Rasa-LilaM
December 3, 2021

It’s nice to see you in the Community, lauriem.


I’m here to help ensure you can reimburse the employee for the insurance premiums. Let’s make sure that the newly created payroll item is added to the employee’s record. This way, you’ll be able to use it when creating a paycheck.


Here’s how:

 

  1. In QuickBooks Desktop (QBDT), press the Employees menu at the top bar and choose the Employee Center.
  2. From the list, double-click the employee's name to see more details.
  3. Go to the Payroll Info menu on the left panel and navigate to the Additions, Deductions, and Company Contributions section.
  4. Click the Item Name drop-down to select your reimbursement payroll item.
  5. Once done, press the OK button.

 

When creating paychecks, the addition item will appear in the Other Payroll Items area of the Preview Paycheck screen.

 

Here’s an article that tackles how to handle mileage, travel, or non-taxable insurance reimbursements: Create a non-taxable reimbursement payroll item. This resource provides detailed information about adding and setting up the pay type.


Since you mentioned that you’re unable to use it to create a payment, may I know the error you encountered? Did you create a paycheck or regular check? Any additional information you can provide will help us resolve the issue that you’re currently experiencing.


To help you easily handle any payroll-related- tasks, click here to view our self-help articles. The topics include taxes, forms, account management, payroll reports, process payroll checks, etc.


Drop a comment below if you have clarifications about reimbursing your employee's insurance premiums. I’m always ready to help and make sure this is taken care of for you.

L
lauriemAuthor
December 7, 2021

Hello, again. Thank-you for the information about going in through the Employee's page

 

My treasurer informed me this reimbursement of her insurance premiums is taxable income. Am I incorrect in categorizing the Payroll Item as an Addition? Should I classify it as wages?

 

I'm going to try it again using your instruction and see how it goes, and look forward to your feedback

M
Mark_R
December 7, 2021

Thank you for getting back to us, @lauriem.

 

Allow me to provide information about categorizing payroll items in QuickBooks Desktop.

 

It's correct to use the Addition payroll item type to set up reimbursement. Please know that the Wages payroll item is only used to track hourly wages, annual salary, commissions, or bonuses. To ensure you're categorizing the correct payroll item, I suggest seeking help from your accountant. This way, they can guide you on which payroll item to use for taxable reimbursement. If you don't have an accountant, you can find one through this link.

 

You might want to change incorrect payroll items used on paychecks. This article will help you correct it: Edit payroll items used on paychecks.

 

Please let me know if you need clarification about payroll items. I'll be standing by for your response, @lauriem.

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