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Set Up Pretax Aflac 100% Paid By Employee

Forum|Forum|6 years ago
December 3, 2019
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How do I set up a PRETAX Aflac deduction paid 100% by the employee. Thank you!

QuickBooks Desktop

Best answer by Kristine Mae

AFLAC is a supplemental insurance, Mermaidgurl. Let me guide you with setting it up.

First, let's create the item. Here's how:

Click Lists, then go to Payroll Item List.
Click Payroll Item, then select New.
Select Custom Setup, then click Next.
Select Deduction, then click Next.
Enter a desired name, then click Next.
Enter the agency name, select the liability account, then click Next.
Select the tax tracking type, then click Next.
Click Next on the Taxes page.
Select Neither on the Calculate based on quantity page, then click Next.
Select gross pay, then click Next.
Enter the rate and limit, then click Finish.

Next, let's add it in the employee's profile. This way, the item will show when you create the paycheck. Here's how:

Click Employees, then go to Employee Center.
Double-click the employee name to open their profile.
Go to the Payroll Info tab.
Under Additions, Deductions and Company Contributions, add the AFLAC item.
Enter the amount.
Click OK.

I'll add screenshots to better guide you.

I'll include an article about setting up a payroll item for an insurance for future reference.

If there's something else that I can do for you, please tag me. I'll get back to you as soon as I can.

Kristine MaeAnswer

AFLAC is a supplemental insurance, Mermaidgurl. Let me guide you with setting it up.

First, let's create the item. Here's how:

Click Lists, then go to Payroll Item List.
Click Payroll Item, then select New.
Select Custom Setup, then click Next.
Select Deduction, then click Next.
Enter a desired name, then click Next.
Enter the agency name, select the liability account, then click Next.
Select the tax tracking type, then click Next.
Click Next on the Taxes page.
Select Neither on the Calculate based on quantity page, then click Next.
Select gross pay, then click Next.
Enter the rate and limit, then click Finish.

Next, let's add it in the employee's profile. This way, the item will show when you create the paycheck. Here's how:

Click Employees, then go to Employee Center.
Double-click the employee name to open their profile.
Go to the Payroll Info tab.
Under Additions, Deductions and Company Contributions, add the AFLAC item.
Enter the amount.
Click OK.

I'll add screenshots to better guide you.

I'll include an article about setting up a payroll item for an insurance for future reference.

If there's something else that I can do for you, please tag me. I'll get back to you as soon as I can.

D

DebC-TSB

Hi,

Can you tell me what tax tracking type you chose?

Step #7. That's the most crucial part of setting up.

Thank you.

Michael K

Hey there, @DebC-TSB. Thanks for joining the thread.

The Tax Tracking Type is None in most cases for deductions from post-tax health insurance and Premium Only/125 for deductions from pre-tax health insurance. To assess the taxability of the item, contact your health insurance administrator. To determine the tax tracking type for Health Savings Accounts and Flexible Spending Accounts or S Corp Medical, click the following links:

Please let me know if there's anything else I can do to be of assistance.

S

SashaMC

Hello rjk1080,

Welcome to the QuickBooks Community! There is availability to create pretax deduction types in QuickBooks Online. Here's how:

1. Go to the employee's profile and select the employee.

2. Go to the Section 5 area and click + Add deduction link.

3. From the drop-down menu, click these deductions:

Deduction/contribution or garnishment: Deduction/contribution
Deduction/contribution type: Health Insurance
Type: Medical Insurance.

4. Add the provider information and the amounts for Employee and Company-paid fields.

5. Choose Pre-Tax insurance premium and click OK.

You can refer to this article for more explanation on supported pay types and deductions in QuickBooks Online.

Please reach out to me if you need any more help! Have a nice day.

R

rjk1080

That does not answer the question. What about other deductions that are pretax other than Medical, dental, or Vision? Why does QBO not offer those as selections like QBD?

MariaSoledadG

Let me provide you some information about pretax deduction in QuickBooks Online, rjk1080.

A pre-tax deduction reduces the employee’s taxable income, thus they will owe less income tax. They may also owe less FICA tax, including Social Security and Medicare. Pre-tax deductions lower employer-paid taxes like the Federal Unemployment Tax (FUTA), FICA, and SUI.

In QuickBooks Online (QBO), voluntary payroll deductions include medical, dental, and vision insurance premiums both pre-tax and post-tax. On the other hand, garnishments are not voluntary deductions. You'll want to make sure that you've set up a new deduction for your employees for the deduction item to appear as an option when adding a deduction to the rest of your employees. To do this, follow the steps below:

Select Employees.
Select the employee's name.
Select Edit ✎ next to Pay.
In section 5, select + Add a new deduction or + Add deductions.
From the Deductions/contributions ▼ dropdown menu, choose New deduction/contribution.
Choose a Deduction type and Type from the small arrow ▼ icon.
Enter Provider name(appears on a paycheck).
From the Amount per pay period ▼icon, choose $ amount or % of gross pay and enter the $ amount or percentage. Do the same for the Company-paid contribution as applicable.
Click OK, then Done.

For more information about the updated benefit plan limits, read this article for your reference: Benefit Plan Contribution Limits for 2021.

Feel free to let us know if you have any concerns about pre-tax or other deductions. We're here to make sure that we'll be able to assist you further.

J

jhudson8476

The example here is for Quickbooks Desktop. How do set up a 100% employee paid Pre-Tax Aflac Deduction?

J

JonpriL

I'm here to share an example of an employee's profile with a pre-tax deduction, @jhudson8476.

Before we can accomplish your goal for today, may I ask for a few clarifications about your inquiry? Saying the example is for QuickBooks Desktop, are you looking for the steps needed for QuickBooks Online Payroll?

I'll be waiting for your response in the comments below. Hope to hear from you soon. Take care and stay safe!

A

Acctg-QPS

I can follow all the instructions until it reaches the part about selecting the tax tracking item. I am having difficulties determining which item is best for Pretax Aflac paid by Employee. I selected Non-Taxable sick leave. Please advise.

Thanks

I

IrishNinoJ

I appreciate you for following all the instructions provided by my colleague, Acctg-QPS. Allow me to assist you further so you can choose what's best for Pretax Aflac.

The Tax Tracking Type is None in most cases for deductions from post-tax health insurance and Premium Only/125 for deductions from pre-tax health insurance.

To assess the taxability of the item, I recommend contacting your tax expert or accountant for help on the best one to use. To determine the tax tracking type for Health Savings Accounts and Flexible Spending Accounts or S Corp Medical, click the following links:

In addition, you can check out the Pretax health insurance section of this article for more details about the supported pretax health insurance: Add or change pay types.

Please let me know if you need further assistance with pre-tax or other deductions. We're available to assist you 24/7.

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