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Minnkj
Level 1

How do I suppress FICA%2FMedicare in QBO payroll for S Corp Owner Health Insurance.

I am trying to run S Corp owner health insurance through wages but I am unable to suppress FICA/Medicare.

3 Comments 3
jamespaul
Moderator

How do I suppress FICA%2FMedicare in QBO payroll for S Corp Owner Health Insurance.

Hello, Minnkj.

 

I'll help you suppress the FICA/Medicare taxes in QuickBooks Online so you can run the S Corp owner health insurance. 

 

You can suppress the FICA/Medicare taxes by going to the employee's settings. Here's how: 

 

  1. Go to Payroll or Workers, then click the Employees tab.
  2. Find and select the employee in question. 
  3. Click the pencil icon beside Pay.
  4. Hit the pencil icon again under section two.
  5. Expand the Tax exemptions section.
  6. Check Social Security and Medicare. 
  7. Click Done

 

exemp1.PNGexemp2.PNGexemp3.PNG

 

A reference regarding the steps can be found in this article: Employee payroll tax exemptions.

 

Also, if you want to set up other pay types or deductions for your employees, you might want to check this article. It outlines the supported payroll items in QuickBooks Online Payroll. It also tells you the tax compliance and other details under each item. 

 

You can also check out other articles here if you need help with something else in QuickBooks Online. They contain a number of guides, important pointers, and details about the features in QuickBooks Online. 

 

I'll help you out with other tasks you might have. Just lay down the details here and I'll get back to you as soon as possible. 

Minnkj
Level 1

How do I suppress FICA%2FMedicare in QBO payroll for S Corp Owner Health Insurance.

Thanks.  That works except when I click on the "Tax Exemptions" I get the following response:


"Contact a payroll specialist to set up an exemption for Employee"

JasroV
QuickBooks Team

How do I suppress FICA%2FMedicare in QBO payroll for S Corp Owner Health Insurance.

It could be you have an active payroll subscription, @Minnkj.


Thus, you’re unable to tax-exempt your employee. To verify this, let’s go to your Account and Settings. Here’s how:

 

  1. Sign in to your QuickBooks Online (QBO) account.
  2. Go to the Gear icon.
  3. Click Account and Settings.
  4. Select Billing & Subscription page.
  5. Then check your payroll subscription plan from the Payroll section.

If you have one, I recommend reaching out to our Support team. There, they can share with you additional steps in making your employee tax exempt.

 

However, if you don’t have one, I suggest clearing your browser's cache to remove all save data from it.  Too much cache file can cause an unusual behavior to the browser that affects your QBO experience.

 

If the issue persists after clearing the cache, I suggest using other supported browsers. This way, we can check and see if this is a browser-integrated issue. Once everything is in place, you can now process your payroll seamlessly.

 

Let me know if you have other concerns or questions managing your employees in QuickBooks, I’m more than happy to help you.  Have a good one!

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