I have searched far and wide and have not found a similar discussion. Seems so simple, yet I can't figure it out. Appreciate the help! I have an S-Corp with 2 owners and 1 employee.I have QuickBooks Online Simple Start and QuickBooks Self Service Payroll. Profit and Loss Statement is showing my full Health Insurance Expense AND Company Contribution: Health Insurance. I am not sure if I should set up a wash/reimbursement within an Expense account or if I should use liabilities/assets. Employer pays health insurance bill on 1st of Month for the remaining month.Record it as an expense under Health Insurance.5th & 20th of each month, employee is paid and deduction is made reimbursing the 1st of month expense. Employer contribution is recorded on payroll.Employee's pay deducted for half of the her own insurance expense.Employer contributes half of the employee's expense.Employee's deduction is not displaying in Profit and Loss (i.e. it's not reducing the Health Insurance Expense).S-Corp Owners on Payroll DO NOT have any contributions/deductions recorded. Accountant said it's easier to not have that on the payroll to account for it at end of year.Therefore, I believe, there should be three categorizes:Health Insurance ExpenseCompany Contribution at Payroll time (which reduces Health Insurance Expense)Employee's Deduction at Payroll time (which reduces Health Insurance Expense)

A

Anonymous

Question

Insurance Expense Duplicating with Payroll Company Contributions

Forum|Forum|6 years ago
March 24, 2020
4 replies
33 views

I have searched far and wide and have not found a similar discussion. Seems so simple, yet I can't figure it out. Appreciate the help!

I have an S-Corp with 2 owners and 1 employee.

I have QuickBooks Online Simple Start and QuickBooks Self Service Payroll.

Profit and Loss Statement is showing my full Health Insurance Expense AND Company Contribution: Health Insurance. I am not sure if I should set up a wash/reimbursement within an Expense account or if I should use liabilities/assets.

Employer pays health insurance bill on 1st of Month for the remaining month.
Record it as an expense under Health Insurance.
5th & 20th of each month, employee is paid and deduction is made reimbursing the 1st of month expense. Employer contribution is recorded on payroll.
1. Employee's pay deducted for half of the her own insurance expense.
2. Employer contributes half of the employee's expense.
Employee's deduction is not displaying in Profit and Loss (i.e. it's not reducing the Health Insurance Expense).
S-Corp Owners on Payroll DO NOT have any contributions/deductions recorded. Accountant said it's easier to not have that on the payroll to account for it at end of year.

Therefore, I believe, there should be three categorizes:

Health Insurance Expense

Company Contribution at Payroll time (which reduces Health Insurance Expense)

Employee's Deduction at Payroll time (which reduces Health Insurance Expense)

john-pero

Level 12

We use just Health Insurance Expense for the payment as a total, then use payroll deduction to post to same expense account, reducing the company deductible cost. We are LLC, not S-corp so I do not know if any of what you provide in insurance is a taxable to employee fringe benefit. On our system the employee contribution reduces their income subject to SS/Med by the amount of the deduction. You are not making an employee contribution unless you are giving the employee money to pay the insurance on their own.

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Anonymous

There is no option for Employee Deduction to post to an Expense account. Under Settings > Payroll Settings > Preferences, I scroll down to "Other Liability & Asset Accounts" where the Health Insurance Premium is located. It only lists Liability accounts so the Employee's Health Insurance Payable grows.

Similarly, Company Contributions only have Expense accounts but the company contribution from each paycheck goes to the same Health Insurance Liability as the Employees Deduction. So my company contribution automatically duplicates the general health insurance expense.

First of Month - I pay full insurance expense

Paycheck - Employee deducted share of insurance from paycheck, posts to Wages expense account and Insurance Payable Liability account. Company Contribution posts to same Insurance Payable Liability account and to a Company Contributions expense account (duplicating the health insurance expense I paid at the first of the month).

Is the only option to do a journal entry after every paycheck with the following:

Debit Health Insurance Liability and Credit Health Insurance Expense for the employee and company contributions? Then the main Health Insurance expense account only shows the remaining expense (owner's health insurance). Then under Payroll expense, is has Company Contributions and then Wages (which includes employee's deduction).

Then the liability accumulating both

J

Jennibrown

Did you figure this out? I am having the exact same issue and spent 3 HOURS on the phone with Quickbooks Payroll this morning and got no answer. I would love to know if you found a solution!

1

112020

We are having this same issue ! If Quickbooks Support can't answer the question, how is an accountant going to help ? Quickbooks provided the specific process for creating the Health Insurance payroll items, so Quickbooks should know how to fix the duplication issue. Please, there must be some way, and if it's a journal entry, then please show us how ...

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cynthiab315

I have the exact same problem. I want the company contribution to show on the pay stubs, but I can't put them in the liability from the payroll. Then to create the bill I get a duplicate.

This is really bad and one of the reasons I am going to move to a different accounting and payroll system.

I have heard good things about NetSuite.

Quickbooks Online and Quickbooks Payroll Online are horrible to use.

Not meant for anyone who understands accounting principles.

I hate it, my CPA hates it.

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SharonH3

The issue is a Quickbooks issue and they should fix it.

People are understanding the issue and it is being handled incorrectly by QB software

It happens to me as well -telling someone to call an accountant because QB does not work right will not resolve the problem--though intuit frequently resorts to that answer when they know they are in the wrong.

So Intuit Experts-answer the question/fix the problem - jump in here

T

TomR3

Did QB respond to this questions?

R

RCV

QuickBooks Team

This isn't the kind of situation we want you to experience, TomR3.

The expense and liability accounts will both be impacted by the insurance. Liabilities are paid and deposited to the liability account to lower expenses. We will need to analyze the paychecks created if there are multiple expenditures created and if your insurance expense is duplicating with payroll company contributions.

It would be preferable to get in touch with our Payroll Support Team in this situation. They will pull up your account in a secure setting and look at the problem. Here is how you can contact them:

Go to Help (?).
Click Contact Us.
Enter your concern, then select Let's talk.
Choose a way to connect with us:

Start a chat with a support expert.
Get a callback from the next available expert.
Ask the community to get help from businesses like yours.

I'm adding this article to help you get ready during tax season: Year-end checklist for QuickBooks Online Payroll.

By posting a comment below, please let me know how the call goes. I'll be right here to help whenever you need additional information concerning payroll.

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TomR3

I spoke with support and they didn't have an answer.

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St33acy

Hi Did you ever get a response from QBO? Having the same issue.

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