Yes, you absolutely can and should set up employer contributions for union dues and benefits in QuickBooks Online (QBO) Payroll, bamitspham. I’ll walk you through how to do it step-by-step.
You’ll want to set them up as a Company Contribution for the employee, separate from any Employee Deduction for their share of the union dues.
Here’s what to do:
- Head over to the Payroll menu and click on Employees.
- Find and select the employee whose payroll you want to update.
- Scroll down to the Deductions and contributions section and click Start or Edit.
- Add a new contribution by clicking + Add deduction/contribution.
- Choose the right type for the deduction or contribution, like:
- Retirement Plans (if it’s for a union pension).
- Health Insurance or Other Deductions/Wage Garnishments (if it’s for union benefits or dues that don’t fit into other categories).
- Choose an appropriate sub-category.
- Add a Description, like “Union Health Contribution” or “Employer Union Dues.” This is what will show up on the paycheque.
- Now, set up the Company contribution:
- Decide how you’ll calculate it: a fixed dollar amount per pay period, a percentage of gross pay, or none if you want to enter it manually each time.
- Enter the amount or percentage based on the union agreement.
- If the employee pays part of the dues, fill out the Employee deduction section too. Otherwise, you can leave it at None or $0 if the employer covers the whole thing.
- When you’re finished, hit Save, then Done.
This way, the employer-paid amount is tracked as a company expense and shows separately on the employee’s paycheck as a non-taxable contribution (depending on the type you pick and CRA rules), apart from wages and deductions.
If you have any other questions, just come back to this forum. We’re always happy to help!