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Level 1

Housing & Employee Benefits. How to enter and track.

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.


QuickBooks Team

Housing & Employee Benefits. How to enter and track.

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.


Here's how:


  1. Click Employees at the top menu bar.
  2. Select Payroll Center.
  3. Click on Start Unscheduled Payroll.
  4. Select an employee under Enter Payroll Information.
  5. Click on Open Paycheck Details.
  6. Fill in the necessary information under Preview Paycheck.
  7. Select an addition item under Other Payroll Items.

If there's no addition item created:


  1. Click the drop-down arrow under Other Payroll Items.
  2. Select Add New.
  3. Select Addition.
  4. Click Next.
  5. Enter the item name.
  6. Click Next.
  7. Select an expense account account and click Next.
  8. Select the tax tracking type.
  9. Click Next thrice.
  10. Click Finish.

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!

Level 15

Housing & Employee Benefits. How to enter and track.

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.

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