How do I set up health insurance deductions in QuickBooks desktop?

Asked By: Quique Orun | Last Updated: 11th June, 2020
Category: personal finance personal taxes
4.2/5 (53 Views . 17 Votes)
To set up a Cafeteria Plan Employee payroll item with Custom Setup:
  1. Choose Lists > Payroll Item List.
  2. Select the Payroll Item > New.
  3. Select Custom Setup > Next.
  4. Select Deduction > Next.
  5. Enter a name for your payroll item (for example, 125 Health Insurance Plan), and then select Next.

Click to see full answer


Accordingly, how do I set up an S corp health insurance in QuickBooks desktop?

Set up an S-Corp pay type

  1. Select Employees. Then select the employee's name.
  2. In the Pay section, select Edit.
  3. In the What additional ways do you pay [employee's name] area, select Show all pay types.
  4. Select S-Corp Owner's Health Insurance.
  5. You can add an amount or leave it blank.
  6. Select Ok.

Additionally, how do I set up fringe benefits in QuickBooks desktop? Add Fringe Benefits to your pay types

  1. Select the Employees tab.
  2. Select the employee's name.
  3. Select Edit in the Pay section.
  4. Select Show all pay types.
  5. Select all relevant fringe benefits.
  6. Select OK.

Hereof, how do I enter payroll deductions in QuickBooks desktop?

To add a deduction, you would go to the Employees tab in desktop > Payroll Center > Payroll Items. This will allow you to deduct when your employees need to repay for shoes, jackets, etc. For more information on Desktop Payroll, click here.

How do I enter employer paid health insurance in QuickBooks?

how do i enter the employer sponsored health coverage

  1. Go to Employees menu at the top and select Manage Payroll Items.
  2. Click New Payroll Item and choose Custom Setup then click Next.
  3. Choose Company Contribution and click Next.
  4. Enter a unique name for this new payroll item which will appear on employee pay vouchers and pay stubs and on payroll reports then click Next.

36 Related Question Answers Found

How do I set up payroll for an S Corp?

Quick and Dirty Payroll for One-person S Corps
  1. Step 1: Set a Reasonable Salary.
  2. Step 2: Calculate the Payroll Amounts and Taxes.
  3. Step 3: Preparing the Federal Quarterly Payroll Tax Return.
  4. Step 4: Record the Payroll Transactions into Your Accounting System.
  5. Step 5: Preparing State Payroll Tax Returns.
  6. Step 6: Dealing with Any Tax Shortfalls.

Can my S corp pay for my life insurance?

If the S corporation is the beneficiary, the premiums are not deductible. The S corporation must also sometimes report life insurance premiums as taxable wages paid to the employee. As long as employees are the beneficiaries, S corporations are allowed to deduct life insurance premiums.

Is S corp health insurance taxable?

If you provide health insurance to employees who own more than 2% of stock in your S Corp, the premiums are tax deductible for your company. And, the premium amounts are taxable for your employees. You must include the amount of the S Corp shareholder health insurance premium in the employee's taxable wages.

How do I report health insurance to an S Corp?

If you're a more-than-2% shareholder/employee in an S corporation, a partner in a partnership, or a member in a multi-member LLC, you may only deduct health insurance premiums directly on Form 1040, line 29, Self-employed health insurance deduction, IF the health insurance plan is considered to have been established by

Where do you report S corp health insurance on the w2?


The health insurance premiums paid by the S corporation are reported on Form W-2, Box 14 S. This is the amount the shareholder deducts on page 1 of Form 1040, line 29 (Self- employed health insurance deduction)

Can S Corp shareholders deduct health insurance?

Specifically, S-corp owners can take a personal income tax deduction on the health insurance premiums paid by the business. For S-corp owners to qualify for the deduction, their health insurance policy must be established by the business and not by the S-corp owner personally.

How do I set up payroll deductions?

To get started:
  1. Step 1: Have all employees complete a W-4.
  2. Step 2: Find or sign up for Employer Identification Numbers.
  3. Step 3: Choose your payroll schedule.
  4. Step 4: Calculate and withhold income taxes.
  5. Step 5: Pay taxes.
  6. Step 6: File tax forms & employee W-2s.

How do I deduct an employee's pay in QuickBooks?

Intuit Online Payroll Enhanced
  1. Go to Employees.
  2. In the Deductions and Contributions section, select Edit.
  3. Select Add a deduction.
  4. From the Deduction ? dropdown menu, the existing deductions shows up.
  5. As applicable, define the Amount per pay period and annual maximum for the deduction you're adding.
  6. Select Save, then OK.

Does QuickBooks Payroll pay taxes?

With Payroll for QuickBooks Online, it's easy to pay payroll taxes and file tax forms. You can write a check or conveniently pay your federal and select state taxes electronically with E-Pay for no extra charge.

How do I set up payroll deductions for health insurance?


To set up an insurance benefit item using custom setup:
  1. Choose Lists > Payroll Item List.
  2. Select Custom Setup > Next.
  3. Select Deduction and click Next.
  4. Name the deduction item and click Next.
  5. Enter the Agency for the employee-paid liability, and the account number and the liability account for the payroll item.

How do I adjust payroll taxes in QuickBooks online?

To find and correct this:
  1. Go to Employees menu and select Payroll Taxes and Liabilities then Adjust Payroll Liabilities.
  2. Select the Previous Adjustment button until you find the adjustment affecting the report.
  3. Select the Accounts Affected button.
  4. Choose Affect liability and expense accounts and then select OK.

How do I set up a pre tax deduction in QuickBooks?

Set Up Pretax Aflac 100% Paid By Employee
  1. Click Lists, then go to Payroll Item List.
  2. Click Payroll Item, then select New.
  3. Select Custom Setup, then click Next.
  4. Select Deduction, then click Next.
  5. Enter a desired name, then click Next.
  6. Enter the agency name, select the liability account, then click Next.
  7. Select the tax tracking type, then click Next.

How do I manually enter payroll in QuickBooks?

In the Search field, type manual payroll and press Enter on your keyboard. Select the topic Calculate payroll manually (without a subscription to QuickBooks Payroll). Under Set your company file to use the manual payroll calculations setting, click the manual payroll calculations link.

Where is the add payroll item tool in QuickBooks?

Click the "Lists" menu, and then select "Payroll Item List." Click the "Payroll Item" drop-down arrow and select "New." Select "EX Setup," and then click "Next." Select the item you want to configure.

How do I edit a paycheck in QuickBooks desktop?


Edit the paycheck
  1. Locate and open the paycheck.
  2. On the Paycheck window, you can change the check number, date, bank account or employee's address.
  3. Select Paycheck Detail to edit or delete amounts for individual payroll items.
  4. Select OK, then choose Save & Close.

What is a fringe benefit rate?

Definition of Fringe Benefit Rate
A fringe benefit rate is a percentage that results from dividing the cost of an employee's fringe benefits by the wages paid to the employee for the hours actually worked.

Is PUCC fully taxable?

Is personal use of a company vehicle a taxable benefit? Yes, the IRS considers the personal use of a company vehicle a taxable noncash fringe benefit. Businesses must calculate the value of this and include it on employee wages. A business must also withhold taxes on PUCC.