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Level 1

Employer Medical Contribution

Hello,

 

My company just began offering a Medical, Dental, and Vision health insurance plan. We pay 75% for the employee as a benefit and the employee pays the remainder 25%. Each payroll (bi-weekly payroll) half of their 25% comes out of their paycheck, and then at the end of the month we pay the health insurance the total 100%.  How would you suggest to structure the chart of accounts to show this liability?

 

Thanks

Solved
Best answer November 30, 2018

Best Answers
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Anonymous
Not applicable

Employer Medical Contribution

I suggest that you simply post the employee deduction to the same expense account used for the medical expense premiums.  Then post the gross bill from the insurance co to the same account.  You will then end up with employer net cost. 

 

For greater detail create a sub account of group insurance expense for employee contributions.

View solution in original post

7 Comments
Highlighted
Anonymous
Not applicable

Employer Medical Contribution

I suggest that you simply post the employee deduction to the same expense account used for the medical expense premiums.  Then post the gross bill from the insurance co to the same account.  You will then end up with employer net cost. 

 

For greater detail create a sub account of group insurance expense for employee contributions.

View solution in original post

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Level 1

Employer Medical Contribution

I understand the explanation for setting up the employee deduction to go to the expense account and the gross bill, however where do you have the employer contribution payroll item mapped to?

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Anonymous
Not applicable

Employer Medical Contribution

I would like an explanation as well for employer contribution.

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Level 3

Employer Medical Contribution

still no answer????

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Anonymous
Not applicable

Employer Medical Contribution

I'm not in the US so probably not the same tax treament for benefits.
IF there is a taxable benefit for the employer-paid amount (check!) that is a non-cash item that should be applied in payroll - but it has no effect on company expenses
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Level 2

Employer Medical Contribution

Still no answer.... I cannot find a satisfactory answer to this question anywhere or with anyone at QuickBooks.  

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QuickBooks Team
QuickBooks Team

Employer Medical Contribution

Thanks for checking in with us, csdoty.

 

In QuickBooks Online (QBO), we can set up the employer health insurance item. Where we can manually divide the contribution amount for 75 % company and 25% employee contribution.

 

Then, the deduction amount is paid by an employee and deducted from each paycheck. While the contribution is paid by the employer and often counts as additional pay or wages. 

 

You can check out this article for the detailed steps: Add or edit a deduction or contribution.

 

If the payroll liability is slightly off, you can create a journal entry to offset the amount. In this case, it would be best to reach out to your accountant on how to categorize the payroll item and journal entries.

 

If you need further assistance with this one, feel free to contact our Payroll Support Team. They'll pull up your account in a secure environment and help you with this one.

 

Here's how:

 

  1. Click the Help icon on the top right. 
  2. Tap the Contact Us button at the bottom. 
  3. Enter a short description of your concern. 
  4. Tick Continue
  5. Choose Message an agent to connect with our support. 

 

I've got a link here that provides you more insights about managing your payroll: https://quickbooks.intuit.com/learn-support/en-us/payroll-and-workers/07?product=QuickBooks%20Online.

 

Keep me posted if you need a hand with running payroll reports or any QBO related. I'll be here to ensure your success. Take care always.

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