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.
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.
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!