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Riverkamp
Level 1

Deduction

When I entered the health insurance deductions in Quickbooks it made them taxable.  It does not give me the option of changing it to pre-tax.  How do I do that?

5 Comments 5
SterlingD
QuickBooks Team

Deduction

Welcome, @Riverkamp and thank you for coming to the QuickBooks Community for assistance. I have some insight on Setting up pre-tax deductions to pass along.

 

Once a deduction is set up, you won't be able to change whether it is pre-tax or not. Instead, you'll want to remove the old deduction and create a new one that is pre-tax.

 

Here are the steps to create a pre-tax deduction:

  1. From the left menu select the Gear icon. Then select Payroll Settings.

  2. Select Deductions/Contributions.

  3. Select Add a New Deduction/Contribution.
  4. Select the deduction type and category.
  5. Enter the description or name of the provider, the description or name must differ from deductions you already have entered into the system, and amount
  6. Select Ok.

For more information on deductions, click here.

 

Please keep me posted on your results with getting this deduction set up. Thanks again, I'll be standing by for your response.

Amy007CPA
Level 1

Deduction

Same issue as the person who originated this post.  There is no option to setup a Pretax deduction.  After I select Add Deduction, there are only three boxes: Category, Type, Provider.  There are only five Categories, and none are Pretax.  If I select Health Insurance, there are only three Types available (Health, Vision, Dental)...no type for Pretax.

SophiaAnnL
Moderator

Deduction

Let's set up the deduction directly on the employee's profile, Amy007CPA. 

 

Using the Payroll Settings page to set up the deduction means that the item affects all of the employees. That being said, QBO can't determine if the payroll item is pre-tax on all of your employees. It would be best to do this on the employee's profile. This way, you'll be given an option to choose whether the deduction is pre-tax or not.

 

Here's how:

  1. Click Workers on the left panel, select Employees, and then click the name of the employee.
  2. On the employee's profile, click the pencil icon beside Pay.
  3. Go to the Does (employee) have any deductions? (Examples: retirement, health care) section.
  4. Click the +Add deductions link.
  5. In the Deduction/contribution drop-down, choose Deduction/contribution.
  6. Select Health Insurance as the deduction type.
  7. On the Type drop-down, choose Medical, Vision, or Dental.
  8. Enter the employee deduction and company-paid contribution amounts.
  9. At the bottom, select the radio button for Pre-tax insurance premium.
  10. Click OK.

I've added screenshots too.

 

If you need help adding the deduction items on the paychecks, just let me know. I'd be happy to show you how.

 

Capture3.PNG Capture4.PNG

CanonMP11DX
Level 1

Deduction

When setting up the employees and their Year-To-Date figures some were set up with deductions that were before taxes (insurance).  Is there a way to change these year-to-date figures?  I've already done a few pay periods.

JonpriL
Moderator

Deduction

Hello @CanonMP11DX,

 

As of the moment, you're unable to change your employee's prior Year-To-Date information once you've already created and run employee payroll.

 

But, you have the option to contact our Payroll Care Team and request a change for your employee's prior Year-To-Date information.

 

From there, they can look into and pull up your account in a secure environment and explain the details in changing your employee's prior information.

 

That being said, here's how you can contact our dedicated support:

  1. Go to Help.
  2. Select Contact us.
  3. Enter Changing Employee Prior Information in the How can we help? field.
  4. Click Let's talk.
  5. Choose Start messaging or Get a callback.

Lastly, you can also read this article which can be your guide for any future tasks: Create Paychecks in Online Payroll.

 

It'll be always my pleasure to help if you have any other questions. I'll be keeping an eye for your response.

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