Company Contributions

bulletproofwelding · ‎March 21, 2021

We recently started our business and are paying for employees health insurance. This was added to payroll as a company contribution. When we run payroll the amount that is put into the register is only for the net amount, which results in the check register not being reconciled properly. Do I need to enter the payments to the insurance company or are they being reconciled elsewhere that I am missing? We are also noting that since quickbooks is only entering the net amount that all taxes that are removed (employee and employer contributions) are not recorded.

Jen_D · ‎March 21, 2021

It's nice to see you here, @bulletproofwelding,

Yes, you need to record the tax payment in QuickBooks so you can match or reconcile it with the bank entry. Setting up a company contribution is only used to calculate the taxes on the paychecks created in QuickBooks.

This will increase the payroll liability for the tax amount, so you still need to process the payment. For the steps, follow the steps on this article: How to use QuickBooks to pay payroll taxes and other liabilities

Please post here again if there's anything else I can do to help you with your company contribution. I'll be right here to help you. Have a nice day!

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