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tucker818
January 7, 2025
Question

Setting up QSEHRA and or stipend benefits in Quickbooks Online (benefit only paid out if claimed)

  • January 7, 2025
  • 1 reply
  • 0 views

I spent a good hour on the phone yesterday with Quickbooks for them to tell me it can't be done with the limitations of quickbooks online.  I refuse to accept that as an answer.  I am sure there is a way it can be done.

 

I see where you can add a reimbursement on payroll settings but by default is that reimbursement amount taxable?

 

QSERHA is non taxable for the employee so that shouldn't be anywhere associated with their check stub correct?  It's also a deduction for the company so how should that be setup?

 

Stipend reimbursements are taxable so I am sure that can be included in the payroll section but how do you distinguish and make that amount taxable (assuming reimbursements are not taxed)

 

I also see where you can give a recurring amount each month in reimbursements but this benefit is only paid out if the employee actually makes a claim (we are using a 3rd party to approve the reimbursements)

 

Any help would be appreciated.

1 reply

S
ShyMae
January 7, 2025

You have invested time and effort in contacting our support team, Tucker. I can imagine the importance of setting up a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) and stipend benefits for your employees. Let's ensure this process is as smooth as possible together. 

 

By default, reimbursements are non-taxable because they are payments made to employees who cover business expenses from their own pockets. This type of payment does not appear on any payroll tax forms.

 

Regarding your second concern, yes, QSEHRA is non-taxable for employees. It means it won't be reflected as taxable income on their pay stubs. In your case, we can manually track or set it up by creating a reimbursement item.

Here's a step-by-step guide to help you through the process:

 

  1. Head to the Payroll menu, then Employees.
  2. Select your employee.
  3. Go to the Pay Types section, then click Edit.
  4. Check Reimbursement, then click the Pencil icon to edit the name. We can enter QSEHRA Reimbursement in the field. If you don't see this option, scroll down to Additional pay types. 
  5. If needed, enter a recurring amount. 
  6. Once done, hit Save.
     


For your third concern, since you indicated that you want the stipend reimbursement to be taxable, you can set up a deduction or contribution item. However, I recommend consulting your accountant to determine the most appropriate item.

 

Moreover, you can run a payroll report to get a detailed summary of your company's payroll expenses, including employee salaries, bonuses, taxes, and other related costs in the future. 

 

Your focus on providing valuable health benefits and stipends to your employees highlights your commitment to their well-being. Consulting your accountant is a great way to ensure these are all set up accurately. I'm ready to assist you whenever you need further support or guidance. 

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