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J Myers
Level 3

employer paid health

How do we record employer paid health insurance for furloughed employees who have no paycheck in the 2nd qtr? QB won't let me record a zero paycheck but somehow I need to get employers paid health premium put in for the employee retention credit for second quarter. HELP?

 

Also, why do instructions for setting up "Cares Expense" for payroll that is eligible for retention credit tell you to set it up as an "other expense"?  Still wages and an operating expense in my mind.  Not sure why it is saying to set up as other expense. Makes financials look off.

 

2 Comments 2
MaryAnn_E
QuickBooks Team

employer paid health

Hi there, @J Myers.

 

You’ll have to run payroll to generate the health insurance payable. Let me guide you on how you can set up employees and add to CARES Act.

  

To setup CARES Retention Credit, here's how:

  1. Go to the Employees menu, then Manage Payroll Items.
  2. Choose New Payroll Item, select Custom Setup, and then click Next.
  3. Select CARES Retention Credit on the Other Tax window, then next.
  4. On the Name used in paychecks and payroll report window, enter CARES Retention Credit, then Next.
  5. In the Agency for company-paid liability window, select Payroll liabilities in the Liability account dropdown, then select Payroll Expenses then Next.
  6. From the Taxable Compensation window, click Finish.

 

Refer to this article for additional information: How to set up and track the Employee Retention Credit under the CARES Act.

 

This article can also help you in the future for more information about the Care Act: Understanding the Affordable Care Act Employer Mandates.

 

 Let me know if I can be an additional help. Please post any additional questions here in Community. 

J Myers
Level 3

employer paid health

I have done all of that--but when I try to run a payroll with 0 wages and only a zero effect item for the Company contribution for Health credit IT WILL NOT LET ME. Says a zero dollar paycheck cannot be generated and it will not let me proceed with finishing the payroll if there a zero dollar paychecks involved.  

 

Thanks for continued help

 

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