If you are not confident you have set up QuickBooks Payroll correctly, it is in your best interest to contact a QuickBooks Pro … Payroll Administrators must create a separate payroll item for each payroll deduction from gross or net pay. b. Manually when you pay employees by entering the payroll item for each paycheck. Recent IRS rules regarding the deduction for health insurance payments for S-Corporations have changed the deductibility of health care coverage. 3. 3 - Create a new paycheck for the corporate officer and click Preview Paycheck. Click the employee's name, and then click Edit employee. To set up company contributions to an employee's health insurance: In the left navigation bar, click Employees. Quickbooks provides the basic payroll items already listed in the payroll item list, e.g. Record health care coverage costs per employee in . one of three ways: a. The new rules allow an S-Corporation to pay the health insurance premiums directly or to reimburse employees for payments made personally. To add the Section 125 health premium deduction: 1. Automatically when you pay employees by attaching the new payroll item to each employee record. Enter the S-Corp Adjustment payroll item created in Step 2, for the amount of .01 on the next line. How to Set Up Health Savings Account Employee Deduction Item in QuickBooks Desktop Payroll Open Quickbooks desktop and click on the Lists menu and select Payroll Item List. You have a group health insurance plan set up in payroll to deduct an employee contribution and keep track of an employer contribution. With 1 in 12 Americans already paid through QuickBooks Payroll, adding insurance to the mix removes another barrier for owners. Set up a Company Contribution payroll item with a new tax-tracking type. Note: If payroll is not turned on in your Quickbooks file, then you will not see the Payroll Item List selection. QuickBooks software allows you to easily manage and track HSAs by the simple step of setting up a Health Savings Account payroll item. Create a paycheck for each S-Corp owner that is covered by a company health insurance policy. 4. Here is the scenario. Use S-Corp payroll items you just set up: This adjustment can be made in a separate paycheck using unscheduled payroll or in the next regular payroll. QuickBooks Online 2019-Payroll Item Setup Health Insurance Employer paid 4 - Remove any earnings item all other items (start with a blank paycheck). Examples of payroll deductions include union dues, loan repayments, employee-paid insurance, and employee contributions to a pension or 401(k) plan. How to Set Up an Employee Deduction Health Insurance Payroll Item in Quickbooks Desktop Open Quickbooks desktop and click on the Lists menu and select Payroll Item List. When setting up employee deductions, such as health insurance, 401k plans, wage garnishments and other payroll deductions, you must first set up a new payroll item. QuickBooks Payroll Adds Health Insurance Options. Click into the Review Paycheck 2. Note: If payroll is not turned on in your Quickbooks file, then you will not see the Payroll Item List selection. Setting up the employee Wage/Withholding screen for health insurance premiums paid to S-Corp officers According to the IRS website (Headliner Volume 41, February 12, 2003) This TEC "Headliner Package" describes the Correct IRS Forms for Reporting Health & Accident Insurance Premiums for greater than 2% S Corp Shareholder-Employees. 5 - Under Other Payroll Items:. See Set up contributions to an HSA. 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