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