We started offering our employee health insurance in June of 2018. His health insurance premium year is therefore June - June (not January to January). We pay our employee weekly. The insurance company bills us Monthly. We calculated his payroll deduction based on the weekly premium. Unfortunately, from June 1, 2018 to Dec. 31 2018 --- their were 29 weeks, so 29 deductions. In the same period of time there were 6 monthly premium bills from the insurance company. So, as of 1/1/19 - QuickBooks is showing that we have overdue payments. (Ie, we deducted more than we paid). This would have caught up rolling into the next year, however, for some reason QuickBooks is resetting at January 1. How can we change the reset date to be June 1 so that it would be consistent with his health care plan year?
Welcome to the Community, @jbonett.
There's currently no option to change the limit type of an employee's deduction. However, I have a workaround that you can consider.
In QuickBooks Desktop, there are three Limit Types when it comes to your employee deductions. These are:
Since your deduction resets annually, you can either edit the payroll item to set a the amount to zero to stop it from deducting. Or you can temporarily deactivate the payroll item every end of December and May, and re-activate it every January and June.
You can edit or deactivate your payroll item from your Payroll Item List. Here's how you can edit the amount:
If you want to temporarily deactivate the payroll item, here's how:
Lastly, to correct your prior paychecks, you can make a payroll correction. Here's how:
You may refer to this article for more information: Adjust Payroll Liabilities.
Please let me know if you have any other concerns. I'll be here to help.
Thanks for your quick response Alessandra!
I tried both work arounds you mentioned above and I am still showing an Overdue Liability for 2018? Do I just have to live with the Red warning labels? Should I set up a new payroll item moving forward? I noticed if I change the dates of the previously submitted payment periods... Quickbooks will recalculate.... unfortunately this doesn't help me long term because for two reasons... one it's not accurate and two I end up having the same problem for the next half of the policy period since every month does not have the same number of weeks.
Thank you for getting back to me, @jbonett.
I appreciate your efforts in trying out the workaround I've provided above.
You can also consider creating a new payroll item as you suggested in your response. This way, you can correctly track your payroll deductions moving forward.
Also, QuickBooks will automatically recalculate your deductions when you change the date on your previous payments.
As for the correct recording of the deductions on the payroll, I've edited my answer above. I've provided some steps in creating a payroll adjustment for your employee or for your company. You may follow the steps above.
I've also attached an article above that will come in handy for adjusting your payroll liabilities.
Feel free to leave a comment below if you have any other concerns.