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Level 1

Health Insurance Benefit - Owner is paying half of an employees health insurance premium every month

The owner of our company is paying half of an employee's health insurance premium pre-tax.  


The owner is dividing the payment up each month over 2 pay periods ($105.00 employer paid pre-tax and $105.00 employee portion pre-tax).  The employee's portion should be deducted out of paycheck pretax from employees regular pay.


How do I show this in the employee's paycheck?  I already have Pre-Tax Health Insurance Deduction, Health Insurance Benefit Deduction and Health Insurance Benefit Addition categories.


Which ones do I use for each portion?


Thank you in advance.

2 Comments 2

Health Insurance Benefit - Owner is paying half of an employees health insurance premium every month

I'm glad you reached out to us, quinner7.


Let's create two payroll items (one for the company contribution and one for the employee deduction). Then, you can add these items to the employees payroll. This way, items will automatically show once you run payroll for the employee.


Here's how:

  1. From the Lists menu, pick the Payroll Item List.
  2. Click the Payroll Item button, then select New.
  3. Choose Custom Setup, then Next.
  4. Select Company Contribution and click Next.
  5. Enter the name of the item and tap Next.
  6. Fill in the necessary information under Agency for company-paid liability window.
  7. On the Tax Tracking Type section, select the one that is close to your insurance guidelines.
  8. The, continue to follow the onscreen instructions. Hit Finish when you're done.

You can go to the employee profile to automatically add the amounts from the Payroll Info section. Here are the steps:


  1. Go to the Employees tab and choose Employee Center.
  2. Go to the Employees tab and double-click the name of the employee.
  3. Go to Payroll Info.
  4. Below Additions, Deductions, and Company Contributions, add the contribution item.
  5. Enter the amount.
  6. Click OK.

For the employee post-tax deductions, here's how:

  1. Go to the employee profile.
  2. Go to Payroll Info.
  3. Below Additions, Deductions, and Company Contributions, create a new item.
  4.  Click the drop-down arrow, and select Add New.
  5. Select Deduction, and click Next.
  6. Enter name and click Next.
  7. Click Next.
  8. Select None as the tax tracking type, and click Next thrice.
  9. Select gross pay.
  10. Enter a rate if necessary, then click Finish.

For more insights into creating an insurance payroll item, I recommend checking out this article: Set up a payroll item for an insurance.

If you have other questions, just let me know. I'm always happy to assist you further. Have a great day ahead.

Level 1

Health Insurance Benefit - Owner is paying half of an employees health insurance premium every month

I need to add auto allowance to some employees pay, they get paid bi-weekly but are given a set amount once a month for auto allowance.  I know how to add it but can't figure out how to put the dollar amount for each employee and set it to only be added once a month, on the 15th.

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