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Ddavis78026
Level 1

How do I setup Pre-tax and Post-tax payroll deductions.

We have a employer that pays 1/2 of her employees Accident policy premiums.  Her employee pays the other half and if she has a family that was added the employee pays all of that.  I am trying to set it up in QB Pro 2018, there is not a Pre or Post Tax to select from in the tax tracking section of the set up.  I would appreciate any suggestions on how to do this correctly so that it is tracked and proper taxes are applied.

Thank you!!!

Denise

1 Comment 1
qbteachmt
Level 15

How do I setup Pre-tax and Post-tax payroll deductions.

This is part of New Payroll Item: "there is not a Pre or Post Tax to select from in the tax tracking section of the set up."

 

Yes, each time you add a New Payroll Item, you control it. You either use the EZ setup, or the Custom setup. I teach and use EZ, and also then Edit and step through the setup to confirm, refine, etc.

 

Example: Post Tax = New Deduction Item, set as NONE for Tax Tracking. This is Employee Deduction for health, wage garnishment, employer loan repayment, etc as Post-tax.

 

For Pre-tax, pay attention to the Tax tracking type, because that also updates the text you see for "this affects form 941, 940, box this, line that, and affects X, y and z and reports in the W2 box whatever with code whatever." Examples include 401(k) employee deduction with or without a company contribution match; 403(b); Health insurance; etc.

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