Hello all,
I have a little bit of a mess (in my opinion) that I'm in hopes someone can provide some insight and steps for. currently using Premier Desktop with Enhanced payroll.
Employee who was on health plan left the company. Insurance company retro credited the bill to the beginning of the month which resulted in the EE having been overdeducted (pre-tax) on the premiums. Ran a check to "reimburse" the overdeduction and correct taxes, etc. The system would not allow me to put in a negative "company paid amount" (payroll item is a non-taxable company item). So in running the check everything is correct on his check/W2 - except the company paid amount. I cleared out the payroll items when paying the health insurance company with the amount that needed adjusted on the check being adjusted through the expense tab to correct the P&L amount for the company paid. At this stage everything is good, accounts and items are all as they should be with the exception of this item on his check/W2. I can do an adjustment to the W2 but is there a better way? How can I fix this on his check or does that not really matter at this point as long as the W2 shows it correctly for box 14DD? Would it work (be appropriate) to just edit a prior check for the company portion since it doesn't affect taxes or net? That seems like it would work fine and would eliminate the adjustment that I did when remitting the payment to the HI company. any pitfalls on this that I am not thinking of?
Ok, so that was the simple part. After doing all of that, the insurance company came back and changed their billing indicating that they had credited too much for this EE. I could not stop the reimbursement ck to the EE it had already been deposited. Now I have no way to get the $ back from the EE through PR as they have left the company but the company had to pay the bill. I can work this out with the EE but not through payroll at this point. So in addition to the above issue, there was roughly $590 in premiums paid that should have been pre-tax for this EE and an additional $90 that would be company paid that should be in W2 box 14DD.
At this point I think my only option is to adjust his W2 box 14DD to what the company actually paid (including the $90) so that it ties out to the health insurance expense on the P&L (if the above approach of changing prior checks). And for the remaining $590 that should have been pre-tax he just won't get that benefit unless he has enough to itemize. Yes, technically at this stage it isn't deductible for him since the company paid it however this EE did subcontract work that this can be recouped by the company. So I'm not concerned about the company getting stuck with paying it. I am only concerned about correctly reporting everything and correcting whatever needs corrected.
Thoughts?
