Question

Union dues pretax ?

3 replies
64 views

Trying to set up empolyee union dues. don't know if it pretax or after tax deduction

QuickBooks Online

Tori B

QuickBooks Team

Thanks for reaching out, @RussellServices.

How's your day going so far? I hope all is well.

With every payroll run, QuickBooks Payroll can automatically calculate a payroll deduction or contribution for employees based on their hours worked.

Rather than making tedious manual calculations to figure deductions (like union dues) and contributions, you can calculate them automatically for employees paid hourly, or on salary, commission, overtime, or double overtime.

What you'll need to do is open the employee profile, set up, and assign a deduction or contribution to be calculated as “Per hour worked.” Then, those deductions and contributions will be calculated automatically in Run Payroll.

Here are some more steps to set up payroll contributions and deductions:

Go to Payroll, then Employees.
Select your employee.
From Deductions & contributions, click Start or Edit.
Choose + Add Deduction/contribution.
Pick the following:
- Deduction/contribution type: Select the contribution type.
- Type: Select the specific contribution item.
- Description: enter the name of the contribution or plan provider.
In the Company contribution section, tick how the contribution is calculated. Then enter the amount or percent per paycheck.
If you want to specify an annual maximum amount for company contributions, enter the amount in the Annual Max field.
Hit Save.

For more details about the process, I have this article you can browse: Set Up And Manage Company Contributions.

Let me know if you have any additional questions or concerns. I'm happy to lend a hand. Take care!

R

ronjones-freshfa

The problem I'm running into is that we are setting up company contributions for the various deductions that we have to make for our fringe benefits for the Union. For example one of the items is nwl training, it's not a health account but it is a company contribution. Where do I put this at? When I attempt to do a deduction there's no option for contribution and therefore I can't do it as a deduction, and all of the contributions seem to be tied specifically to health accounts.

JenoP

QuickBooks Team

Managing union fringe benefits can be a little tricky, Ron. Allow me to provide details that can help you set up this type of payroll item in QuickBooks Online.

QBO has three supported types of payroll items when it comes to employee benefits; addition, deduction, and company contributions.

Addition items are used to track extra earnings such as bonuses or commissions, while deductions represent amounts subtracted from an employee's gross pay. This includes items like health insurance premiums, retirement plan contributions, or union dues. Both of these items affect the calculation of the employee's net pay.

Company contributions on the other hand are benefits paid by the employer on behalf of the employee, such as matching 401(k) contributions or employer-paid portions of health insurance.

Regarding union dues, the setup in QBO depends on who bears the cost:

If the dues are subtracted from the employee's gross wages, you'll want to categorize them as a Deduction.
If the company is responsible for paying the dues without reducing the employee's pay, then you can classify them as a Company contribution.

These comprehensive guides will walk you through the process of managing payroll deductions and contributions:

Although these resources offer valuable general information, we recognize that each business has its specific payroll requirements. With this in mind, I suggest reaching out to your accountant for personalized advice. They can ensure that you're setting up these contributions accurately and in full compliance with relevant regulations.

You can also use these articles as additional guidance in the future:

Don't hesitate to ask for help in the Community if you need more guidance when setting up payroll items or paying employees in QBO. We'll make sure to provide additional guidance and support whenever you need it.

Sign up

Login with SSO

Let's get you signed in

Login with SSO