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ApexBoss
October 3, 2023
Question

Health Benefits not matching bill from insurance company

  • October 3, 2023
  • 1 reply
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Does anyone have any best practices to share when dealing with your monthly health insurance bill? Our bill is for the month that just started. I have to pay by the 5th of the month, but we have not taken any deductions or made any contributions for this month yet. When I go to pay my liability check in QB it never matches the billed amount. I always have to add an additional amount to match the billed amount. My problem is I do not know where to add it (Health co paid, health employee paid, vision or dental). Our bill does not break out the employee portion vs the company portion.

I have checked my math over and over again, and the yearly totals will eventually match up.

Do most people make a journal entry at the end of the year to show how much was paid in each category? Or does anyone have a better way to track this monthly?

1 reply

R
RCV
October 3, 2023

This can be a real challenge in your payroll process but I've got you covered, ApexBoss.

 

The pay schedules might differ from the premium payment deadlines. Due to this, it might be impossible to generate a payroll liability check from QuickBooks that corresponds to the sum due on the insurance company's invoice. Frequently, the QuickBooks user will just adjust the check's amount and pay it. This typically leaves the liability account with a negative balance and moves the amount mismatch to the following month.

 

There are two ways to solve this problem. The first step is to create the liability check, after which you should add the company-paid sum to the expense tab.

 

QuickBooks Training 091913 image 3

 

 

On the stub part of this check, you'll see that both tabs have been utilized. QuickBooks uses the Payroll Liabilities tab to create payroll liability checks, and it fills in the amount based on the payroll setup and amounts deducted from employee paychecks. After the liability check has been generated, select the Expenses tab. Then enter the necessary information for the insurance expense in the correct expense account and column, and click the Save button.

 

When you are finished making these entries, click the Recalculate button (depicted by an arrow), and the two entries will be added to the overall check amount. If you entered the correct amount as an expense, the check should now show the amount owed to the insurer.

 

Editing the Payroll Item is the second solution to this problem. Use the expense account typically used for paying the insurance premium to post the deduction rather than a liability account. In this situation, QuickBooks stops keeping track of the payment amount. When the insurance company's invoice is received, it can be entered as a bill in QuickBooks, with the entire amount being posted to the income account. The deductions merely credit the expense account.

 

Just in case the scheduled liabilities show as overdue or appear in red in QuickBooks Desktop, you can check out this article to troubleshoot the issue: Fix overdue or red scheduled liabilities in QuickBooks Desktop. Additionally, I added this article to find and remove liability payments made in Write Checks instead of Pay Liabilities in QuickBooks Desktop Payroll: Correct liability payments made in Write Checks instead of Pay Liabilities in QuickBooks Desktop Payroll.

 

Fill me in if you have additional questions about managing your payroll taxes. We'll be sure to get back to you. Take care always.

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