Employer Contribution Taxable Benefit

Hi there, electronjulie.

Entering employee's health insurance as part of their salary in QuickBooks Online is the same as using QuickBooks Desktop. This would be added as an Employer Contribution. To do this, you'll need to enter the health insurance to each employee's information manually.

Here’s how:

1.  Click  Employees at the left panel.
2. Double-click on the employee’s name to view the complete details.
3. Choose the Employee details section.
4. Click the pencil icon beside Pay to view more information.
5. Navigate to the Does employee have any deductions section and hit the Add a new deduction link.
6. In the What deductions or contributions does employee have page, click the drop-down arrow for Deduction/contribution and choose New deduction/contribution.
7. From the Deduction/contribution type drop-down list, choose Health Insurance. Then, choose one type.
8. Fill in the necessary fields under Employee deduction and Company-paid contribution.
9. Hit the OK button.

Please know that you're always welcome to post if you have any other concerns. Wishing you and your business continued success.

ChristieAnn

Your procedure above does not work for the current version of Advanced Payroll Online. Please could you post the procedure for this version?

Mike

I have Standard Payroll, so does this mean I have to upgrade to be able to add the employer contribution?

Hi, electronjulie.

When using QuickBooks Online Standard Payroll, you 'll have to send the Full Payment Submission (FPS) to HMRC to show all payments and deductions. Let me guide you through the steps.

1. In QuickBooks, run payroll.
2. After you create your payroll, you’ll be prompted to submit your FPS. Select Submit FPS to HMRC.
3. If you haven’t saved your Government Gateway credentials, do this:
   • Enter your Gateway ID and password.
   • If prompted, select a late reason for this FPS.
4. Select Submit FPS. Wait a few moments to find out the final filing status, as below:

   Pending We submitted the FPS and are waiting for a response from HMRC. This status appears for just a few moments--we’ll let you know if it is accepted or rejected on the confirmation page.

Once done, you'll want to go to Taxes, then select Payroll Tax to see details about your filings.

Please check this article for more information: Turn On RTI Reporting to HMRC in QuickBooks Online Standard Payroll.

Let me know if you have any other concerns. I'll always be here to help.

I know how to run a FPS, I do not know how I can add an employer contribution taxable benefit in Quickbooks Online Standard Payroll.

Solutions given previously were for Advanced Payroll, not Standard Payroll.

Hey there, electronjulie.

I'd be glad to help you add an employer contribution in QuickBooks Online via the Standard Payroll. You can follow the steps below to add an employer deduction in QuickBooks Standard Payroll.

1. Go to Employees > Employees.
2. Select the applicable employee.
3. Select Actions (at the top of the page), then select Deductions.
4. Select or search for the deduction you want to add. If you can’t find the deduction you’re looking for, you can add it. Select Add next to the following to add the type of deduction:
   • After-tax deduction
   • Repayment
5. Save your changes.

You can go through these articles to learn more about Standard Payroll as well as managing your deductions in QuickBooks:

Add or customise deductions in QuickBooks Standard Online Payroll

QuickBooks Online Standard Payroll Hub

Let me know how it goes or if you ran into a different situation by leaving a reply below. I'd be more than willing to lend you a hand.