If an employee monthly premium is $428.28 and is taking out weekly at a rate of $107.07, what happens on the months when there is 5 weekly pay periods? Should it be omitted? Do I put in just the monthly premium ($428.28) each month in the limit section of the deductions so that they only pay $428.28?
Hello, FCity. You'll need to manually override the insurance deduction to $0 on the 5th paycheck to avoid over deductions. Go to Employees > Pay Employees > edit the paycheck before finalizing.
Please note that in QuickBooks Desktop, the default rate and limit field in payroll items is for setting a fixed per-pay-period amount, not for monthly resets or proration.
Another option is editing the payroll item to an annualized weekly rate of $98.83 ($428.28 × 12 ÷ 52). With no monthly limit, this amount can run each pay period to reach the correct year-long totals. It would be best to consult your accountant or test thoroughly first to ensure it fits your setup.
To double-check everything's lining up, you can also pull up a Payroll Summary or Payroll Item Detail report and compare against your monthly premium target.
I’ll keep this thread open for any updates or anything else you’d like to share.
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