Good Morning Group -I need some assistance on how to enter company paid benefits into QB Payroll as well as how to enter them. The complication is that these are all paid benefits. The company needs to obtain the tax benefit but they need to be showing as compensation to the employee as well.
Example: The company provides housing ($600.00) per month, plus Utilities ($250.00) per month to the employee. The company also provides 100% of medical, Dental & Vision. At present we are entering it into payroll as an ADDITION for the total weekly amount and then using MISC to remove the costs but that doe snot seem like the correct way. Any help would be appreciated.
Hello there, @CaptainRyan.
Thank you for adding a post. I'm here to help you enter a company paid benefits into QuickBooks Desktop (QBDT).
To enter a company paid benefits, you may need to select an addition item and record it under the Other Payroll Items column.
If there's no addition item created:
Once done creating the item, select the item and add the amount under rate.
Feel free to add a comment below if you have any other payroll concerns. Have a good day ahead!
You are fine like this: "into payroll as an ADDITION for the total weekly amount and then using MISC to remove the costs"
Or as a Company Contribution item, which is the combination of the Gross addition and the Net Deduction in one step.
The point is: The Addition value is Taxed, as Taxable Fringe, but not adding to the takehome, and Tax Tracking is a regular taxable compensation or as fringe benefit, depending on what you need for W2 reporting as code whatever in box whatever. Then, you also need to Never create a liability for this; where the Company Contribution Item or the Deduction (misc) item want a Liability account link, you link that to the same Expense account as the Expense side, typically. Example:
You paid rent as Rent Expense. Now you need to Add the value to paycheck and tax it, then deduct that same amount. Link both account links for the payroll activity to the same Expense account for a Wash.
Thanks for joining this thread, @jcupps71.
The steps shared by the colleague above is for
QuickBooks Desktop since your using QuickBooks Online the steps provided don't work for you.
To enter company paid benefits in QBO, you'll
need to enable the fringe benefit inside the employee profile. Let me show you how:
Once done, enter a value of a fringe benefit on a paycheck. Here's how:
For additional information, please visit this article: Add fringe benefits to paychecks.
You can also read these article for additional reference about handling payroll and employee's record in QuickBooks Online:
Also, to help you with your task in QuickBooks, just go to this link: QuickBooks Basics. Then, click + More Topics to view related articles about managing your sales, expenses, process payroll, taxes, and running reports.
If you meant something else or you have any other questions, please let me know. I want to make sure you're taken care of. Have a good one!
Welcome to this thread, Jen Petersen.
Let me guide you in correcting your W2 to show amount in Box 14 in QuickBooks Desktop (QBDT)
If you haven't filed your W-2s, no need to create or file a W-2c form. You can just take these steps:
If you've already filed your W-2s, you'll need to create and manually file a W-2c form with the Social Security Administration.
To do this, see the General Instructions for Forms W-2c and W-3c sections in General Instructions for Forms W-2 and W-3.
You can fix the issue in your product, then use any payroll reports you need to fill out the W-2c form.
For a complete guide on how to make W2 corrections in QBDT, check out this article (Select your version of payroll): Fix an incorrect W-2.
You can also visit the RS website to get the amendment form and general instructions for W-2 and W-3 forms.
Be sure to get back to me if you have additional questions. It would be my pleasure to help. Have a good one!