How can I activate the "Fringe Benefits Only" option under the Run Payroll button?

Thanks for posting here in the Community, @katiesilcox4.

You can activate the option when creating paychecks by enabling the fringe benefit pay types first within the employee profile.

Here's how:

1. In the left navigational bar, select Workers.
2. Click the employee's name.
3. Tick the pencil ✎ icon next to the Pay section. 
4. Below Step 3, How much do you pay this employee, select + Add additional pay types (like overtime, sick, and vacation pay) .
5. Select Even more way to pay this employee. 
6. Select all relevant fringe benefits.
7. Select Done.

After following the steps above, you'll now be able to proceed with choosing the right option from the Run payroll drop-down. Please note only employees with the fringe benefits pay types shows on the list.

For additional information about creating Fringe benefits paychecks, check out the following article. It also contains detailed steps and screenshots for visual reference. 

Add fringe benefits to paychecks.

Stay in touch whenever you have additional questions about QBO. I’m here to make sure you’re taken care of. Have a great rest of the day.

Hello.  I set up fringe benefits for 2 employees on our payroll and I do not see the "Fringe Benefit Only" payroll option on my drop down.  Could you help?  Thanks!

Hello there, @YKKim.

I'd be glad to help you include the Fringe benefit only option in the paycheck.

You can follow the steps mentioned by my colleague above. If you've followed the steps and you're still not able to see the option, two variables may be causing it.

This may be because of the data cache that needs to be cleared or if you haven't checked the boxes beside the specific fringe benefit in the Even more ways to pay "Employee's name..." section.

Below is the list of the fringe benefits that you can choose from, depends on what applies to the employee:

• Clergy Housing (Cash)
• Clergy Housing (In-Kind)
• Nontaxable Per Diem
• Group-Term Life Insurance
• S-Corp Owners Health Insurance
• Company HSA Contribution
• Personal Use of Company Car

I've added summarized screenshots for your additional reference: 

You may consider checking this article for your future task about assessing your business wages and taxes: Run payroll reports. This contains specific reports with its description.

Please feel free to tag my name in the comment section if you need further assistance or you have other questions in mind. I'd be very happy to lend a helping hand. Wishing your business all the best as we head into 2021!