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Scottzzz
October 19, 2021
Question

Payroll Item Type Change

  • October 19, 2021
  • 1 reply
  • 0 views

Is there a way to change the payroll item type from addition to company contribution?  I setup a ICHRA without knowing, it is showing as a (non taxable) gross pay line item.  I'm afraid the W2 will include these payments in box 1.  When I click edit payroll item there is no option to change.

 

Thanks,

Scott

    1 reply

    R
    Rea_M
    October 19, 2021

    I've come to guide you as to how you can change a payroll item type in QuickBooks Desktop (QBDT), @Scottzzz.

     

    You can make any necessary changes to the Payroll Item Name, the Liability/Expense Account Associated with the item, How to Calculate the item, and/or Default Rates and Limits. However, you're unable to edit the payroll item type. To change it, you'll have to create a new company contribution payroll item (i.e., ICHRA). Here's how:

     

    1. From Lists, select Payroll Item List.
    2. Select Payroll Item and choose New.
    3. Choose Custom Setup and click Next. 
    4. Select Company Contribution, and select Next. 
    5. Enter a name for this item (i.e., ICHRA) and select Next. 
    6. Follow the on-screen steps and enter all the necessary data needed.
    7. Click Finish once done.

     

    Then, in case you've used the addition payroll item on one or more paychecks, this would cause incorrect tax totals to be withheld on employees' W2s. To correct this, you'll have to change the payroll item used on paychecks. You can follow this article for the step-by-step guide: Edit payroll items used on paychecks.

     

    Also, I'm adding this article to answer the most common W2 questions so you're ready for tax season: W-2 General forms and filing information. It includes topics about form availability and filing one, to name a few.

     

    Please don't hesitate to let me know in the comments if you have other payroll concerns and W2 questions in QBDT. I'm always around to help. Take care, and I wish you continued success, @Scottzzz.

    S
    ScottzzzAuthor
    October 26, 2021

    Thanks for the reply.  I have created a new payroll item company contribution per instructions for the ICHRA.  I also followed instructions found in the community for QSEHRA which is similar.

     

    When I create the paycheck and choose the payroll item, the reimbursement does not get added to the check.  It gets added to company summary and I don't know where it goes from there.   I am using desktop pro 2019.

     

    Can you help?

     

    A
    AbegailS_
    October 26, 2021

    Hi @Scottzzz.

     

    Good to hear that you've already created a new payroll item.

     

    I'm here to help ensure that the reimbursement will be added to your check. 

     

    Let's make sure that you created the correct payroll item for the employee.

     

    If you need help in editing the payroll item, here's how:

    1. Select Lists on the top menu bar. Then select Payroll Item List.
    2. Right-click the item and select Edit.
    3. Choose Next twice. Enter the correct tax tracking type. Then select Next.
    4. Click the correct taxes. Then select Next.
    5. Tap Calculate Based on Quantity. Then select Next.
    6. Enter the limit type, if all the employees have the same rate and limit.
    7. If the employees do not have a default rate and limit but do have the same rates and limits, enter the amounts.
    8. Select Finish.

     

    For more detailed steps, you can check out this article: Edit payroll items used on paychecks.

     

    Here's a guide that can give more insight into this subject for your future reference: Adjust payroll liabilities. 

     

    If you've got other questions in mind about QuickBooks Desktop Payroll, feel free to leave a reply below. I'll be glad to assist you in the future.

     

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