Employer paid health benefits in Quickbooks Online

Liz_B · ‎May 22, 2022

The employer/owner is now providing benefits to his employees. Benefits are a completely tax free benefit to the employees and are fully tax deductible to the company. Any time an employee submits a claim directly to the provider, the employer is charged the amount from a preset Health Spending Amount and a 10% admin fee. I have tried asking the question a lot of different ways but can't find the proper answer as to how to post these transactions. Can someone assist?

Henock K · ‎May 23, 2022

Liz_B,

Thanks for joining this thread. If you'd like to set up the benefit as a vendor and then process any payments as an expense, I'd encourage you consult an accountant as they can guide to choose the correct account to set up health benefit.

If you'd like to include an option in QuickBooks Online payroll, I recommend that you send us Feedback by clicking on the Gear icon at the top. This is sent to our Development Team to consider for future updates.

Feel free to reach out if you have any questions, I'll be happy to help.

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Henock K · ‎May 23, 2022

Hi Liz-B,

Welcome to the Community. It's esssential to correctly record your benefits to ensure that your books are up to date. QuickBooks Online payroll is a great program that gives you the ability to pay your employees and track your remittances. I'd be glad to point you in the right direction for recording health benefits in Quickbooks

I'd encourage you to review these articles on how to set up voluntary deductions and the pay types and deductions in QuickBooks Online Payroll.

If you're unsure which deduction to use to set up health benefits for the employees, I recommend that you consult an accountant as they have the knowledge to point you in the right direction to set up deduction/contribution health benefits in order to keep your books balanced. If you don't have an accountant, you can find one near you by clicking on My Accountant on the left navigation menu> and then Find a pro to help.

Let me know if you have any questions, I'll be happy to help.

Liz_B · ‎May 23, 2022

Hi and thank you for responding, however I'm afraid this doesn't resolve my issue. There are absolutely no deductions/contributions from the employee as this is paid solely by the employer, so there would not be any change to payroll setup. It is also100% tax deductible to the company and that is where the problem is. Do I set up the Benefits provider as a vendor and then process any payments as an expense? And how do I indicate that this is tax deductible, do I post it as 'Donation' or would I be wiser to set up a new expense account?

I appreciate the help!

Thanks and regards.

Henock K · ‎May 23, 2022

Liz_B,

Thanks for joining this thread. If you'd like to set up the benefit as a vendor and then process any payments as an expense, I'd encourage you consult an accountant as they can guide to choose the correct account to set up health benefit.

If you'd like to include an option in QuickBooks Online payroll, I recommend that you send us Feedback by clicking on the Gear icon at the top. This is sent to our Development Team to consider for future updates.

Feel free to reach out if you have any questions, I'll be happy to help.

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Employer paid health benefits in Quickbooks Online