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psmljj66
August 29, 2022
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Health Care Premiums

  • August 29, 2022
  • 1 reply
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Hello-I have an employee who has had health care with us, but his wife has better coverage so he has stopped getting health insurance through us. I deducted his portion of the premium last month and I now owe him for that. I reimbursed him through payroll for his portion, instead of subtracting I added the premium amount as a positive. The liabilities did not calculate it using that number. What did I do wrong?

Best answer by AlcaeusF

Hi, @psmljj66.

 

I'm here to provide details about reimbursing an employee for Health Care Premium in QuickBooks Desktop (QBDT).

 

Since you already created the paycheck, you can create a reimbursement payroll item. Then, assign it to the employee's record under the earnings column.

 

To create a reimbursement payroll item, here's how:

 

  1. In QBDT, go to the List menu.
  2. Choose the Payroll Item List.
  3. Click the Payroll Item button, and choose New.
  4. Select Custom Setup, then Next.
  5. Pick Addition from the item type list and click Next.
  6. Choose an expense account. This allows you to set up an account to track the money you owe the employee for reimbursements.
  7. Set Tax Tracking to None and click Next. 
  8. Select the option to Calculate on Net Pay and click Next.
  9.  Enter the default rate and click Next.

 

To assign the payroll item to an employee, here's how:

 

  1. Go to the Employees menu.
  2. Choose the Employee Center.
  3. Double-click on the Employee's information.
  4. Pick the Payroll Info tab.
  5. Click the drop-down menu for Additions, Deductions, and Company Contributions. 
  6. Select the item from the list that you wish to add to your employee's paycheck.

 

Once done, you can proceed with running a second paycheck solely for the reimbursement. By doing this, you can make sure that the liability balances are tracked accurately. Please refer to this article for further guidance: Create and run your payroll.

 

For more tips and other resources, I recommend visiting our website: Self-help articles.

 

Please let me know if you have follow-up questions about this or anything else QuickBooks. I'm always here to help. Stay safe and enjoy the rest of the day.

1 reply

AlcaeusF
AlcaeusFAnswer
August 29, 2022

Hi, @psmljj66.

 

I'm here to provide details about reimbursing an employee for Health Care Premium in QuickBooks Desktop (QBDT).

 

Since you already created the paycheck, you can create a reimbursement payroll item. Then, assign it to the employee's record under the earnings column.

 

To create a reimbursement payroll item, here's how:

 

  1. In QBDT, go to the List menu.
  2. Choose the Payroll Item List.
  3. Click the Payroll Item button, and choose New.
  4. Select Custom Setup, then Next.
  5. Pick Addition from the item type list and click Next.
  6. Choose an expense account. This allows you to set up an account to track the money you owe the employee for reimbursements.
  7. Set Tax Tracking to None and click Next. 
  8. Select the option to Calculate on Net Pay and click Next.
  9.  Enter the default rate and click Next.

 

To assign the payroll item to an employee, here's how:

 

  1. Go to the Employees menu.
  2. Choose the Employee Center.
  3. Double-click on the Employee's information.
  4. Pick the Payroll Info tab.
  5. Click the drop-down menu for Additions, Deductions, and Company Contributions. 
  6. Select the item from the list that you wish to add to your employee's paycheck.

 

Once done, you can proceed with running a second paycheck solely for the reimbursement. By doing this, you can make sure that the liability balances are tracked accurately. Please refer to this article for further guidance: Create and run your payroll.

 

For more tips and other resources, I recommend visiting our website: Self-help articles.

 

Please let me know if you have follow-up questions about this or anything else QuickBooks. I'm always here to help. Stay safe and enjoy the rest of the day.

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